Thoughts on these HELOC terms?

[Paul Dario Jr]

Hey all. I'm a new member to BP and excited to be here in this community.

I'm looking to get a HELOC on my primary residence to help finance a future 1st investment property. Here's the numbers: Current mortgage $528K. Estimated appraisal value $783k (according to Zillow).

Here's what the credit union offered me for an IO HELOC:

"Your Home Equity Line of Credit (HELOC) has been pre-approved for $135,000.00 at a variable interest rate of 6.00%. This rate is based on Prime plus a margin of 2.00%. (Rate will never go below 3.25%)." No closing costs if HELOC stays open for at least 36 months.

Does this seem reasonable?

Thanks!