I'm acquiring about drawing a HELOC on my primary. 80 LTV would have me at about 50k after what's left from my first mortgage. I've just spoken to BofA who has a 7% rate, about 2.5 points above prime. Does that seem high for a 50k HELOC?
Other factors (i.e. credit score, DTI ratio, etc) could be influencing the rate but in general that is a little high for a HELOC on a primary residence. I have a couple HELOCs on rentals that have lower rates, and usually the rate for a HELOC on a primary residence should be a little lower. So it might be worthwhile to call around.
@Account Closed without knowing your credit score, which would obviously play a big part in things.... yes, 7.00% does seem too high for a HELOC. I would think you could get below 6.000% somewhere right now with a better than average credit score. Check with other institutions.
Thank you both for your sound advice. 750+ FICO, BofA does incur the closing costs minus appraisal fee, but I agree, I can do better. I have called some local credit unions, but since they are not backed by Fannie and Freddie, they charge their interest a little differently, and a little confusingly honestly. I did get some sound advice from a loan officer from a local CU who told me BB&T, TD, and WF have the best programs for HELOCs. Not sure if you have heard similarly. Also, was told, the best time to get a HELOC is right after tax season as lenders are trying to stream in as much cashflow as possible. Does this sound correct?
Ended up going through TD Bank. .49% over prime and only 99 in closing fees. They even pay for the appraisal. Anyone interested in taking out a HELOC on a property, I highly recommend TD.