Official HELOC (Home Equity Line of Credit) thread

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ProfessorX
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by ProfessorX »

Does anyone have any recommendations for a Bank to apply for a HELOC in Philadelphia PA?

I want to use it as a temporary Bridge loan for a down payment on a new house, so I am not super concerned about getting the best possible interest rate.

Instead, I would like to try to minimize fee's. I am also looking for a bank that would not have an aribitrary HELOC cap on the amount that I can borrow. I would like to be approved for around $400K in the HELOC and this should be possible based upon circumstances. Thanks in advance!
Maven
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by Maven »

Can someone explain how the interest and/or other fees are accrued when using a Third Federal HELOC? We've just utilized ours for the first time and received a finance charge before the first payment was due. Balance $4,700 and finance charge $7.70. Just trying to understand the difference with this charge as opposed to what we expected by carrying a balance at 2.99%. Thank you!
cfuser
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Joined: Wed Dec 15, 2021 11:13 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by cfuser »

Maven wrote: Wed Dec 15, 2021 1:09 pm Can someone explain how the interest and/or other fees are accrued when using a Third Federal HELOC? We've just utilized ours for the first time and received a finance charge before the first payment was due. Balance $4,700 and finance charge $7.70. Just trying to understand the difference with this charge as opposed to what we expected by carrying a balance at 2.99%. Thank you!
If I'm understanding right, that looks like about 20 days' interest.

Your daily interest rate is 2.99% / 365 = .00819%
Multiply that by $4,700 = 38.5 cents a day
Times 20 days = $7.70
Maven
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Joined: Sat Dec 08, 2018 4:01 pm

Re: Official HELOC (Home Equity Line of Credit) thread

Post by Maven »

cfuser wrote: Wed Dec 15, 2021 11:18 pm
Maven wrote: Wed Dec 15, 2021 1:09 pm Can someone explain how the interest and/or other fees are accrued when using a Third Federal HELOC? We've just utilized ours for the first time and received a finance charge before the first payment was due. Balance $4,700 and finance charge $7.70. Just trying to understand the difference with this charge as opposed to what we expected by carrying a balance at 2.99%. Thank you!
If I'm understanding right, that looks like about 20 days' interest.

Your daily interest rate is 2.99% / 365 = .00819%
Multiply that by $4,700 = 38.5 cents a day
Times 20 days = $7.70
Thank you!
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willthrill81
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by willthrill81 »

ProfessorX wrote: Mon Dec 13, 2021 12:52 pm Does anyone have any recommendations for a Bank to apply for a HELOC in Philadelphia PA?
I'm not sure if Third Federal Savings & Loan does business in PA, but if they do, I would recommend them. We opened a no-cost HELOC with them last year, and the rate is .26% below Prime, which is nigh unbeatable these days and far better than anything we could get from a local credit union.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
exodusNH
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by exodusNH »

ProfessorX wrote: Mon Dec 13, 2021 12:52 pm Does anyone have any recommendations for a Bank to apply for a HELOC in Philadelphia PA?

I want to use it as a temporary Bridge loan for a down payment on a new house, so I am not super concerned about getting the best possible interest rate.

Instead, I would like to try to minimize fee's. I am also looking for a bank that would not have an aribitrary HELOC cap on the amount that I can borrow. I would like to be approved for around $400K in the HELOC and this should be possible based upon circumstances. Thanks in advance!
Not that it's a lot of money compared to $400k, but if you don't pay an origination fee for the HELOC, you might get hit with an early closure fee of around $600 if you sell the house.
Firemenot
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by Firemenot »

Bumping this thread. I’d like to pull a HELOC larger than than 200K maximum at Third Federal. Third Federal by far has the lowest rates from what I can find, but the 200K cap probably isn’t enough for my project. Any other good options people have found for higher balance HELOCs? I have plenty of equity in house and LTV ratios will be low.
TJat
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by TJat »

My turn to bump - 3rd federal still has by far the best HELOC rate I can find. I'm okay with the long close time, but any members have any poor experiences with their service (either during application or after close)? Would anyone be willing to provide a referral?
interwebopinion
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by interwebopinion »

jst wrote: Fri Apr 02, 2021 3:45 pm I'm thinking about a $1M HELOC on my paid-off house to basically use as a construction loan on a new house. If I do this instead of a construction loan, I think I can deduct the interest. When the new house is built, I'd mortgage that and it'll become my primary residence and then I will deduct that interest.
Not sure that's going to work - see: https://www.irs.gov/newsroom/interest-o ... er-new-law

IRS guidance is that the loan should be "... used to buy, build or substantially improve the taxpayer’s home that secures the loan"
UnLearnYourself
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Re: Official HELOC (Home Equity Line of Credit) thread

Post by UnLearnYourself »

TJat wrote: Fri Jan 14, 2022 2:16 pm My turn to bump - 3rd federal still has by far the best HELOC rate I can find. I'm okay with the long close time, but any members have any poor experiences with their service (either during application or after close)? Would anyone be willing to provide a referral?
I live in an Owner-occupied 3-family and unfortunately ThirdFed does not lend on anything with more units than a 2-family.

Anybody aware of any lenders who may offer prime minus rates for 3-families?
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