Comparing Lenders for Heloc

[David Arehart]

Hello everyone, Im trying to get the ball rolling on investing in RE, so over the last few days I have been calling local credit unions and banks to compare Heloc rates and terms. Ive contacted roughly 10 or so and have narrowed it down to 3. I think I know which one to go with but I wanted to check with some experienced creative investors first. Which one do you think is the best option for funding the downpayment on a SFH rental? Im looking to get 90% LTV on my primary residence for this Heloc, depending on appraisal I think I can get a line for 50k.

Option 1:

--- Promotion: 6 months @ 2.49% Variable Rate --- Floor Rate: 5% (With Great credit) --- Ceiling Rate: 15% --- No Annual Fee

--- No prepayment Fee --- Appraisal $400 + $100 Processing Fees --- After 6 months variable rate can be locked in. Two rates can be locked at one time, only four rates locked in for entire life of line. No Max rate rise/fall per year.

Option 2:

--- Promotion: .99% Fixed for 12 months --- Floor Rate: 5.5% --- Ceiling Rate: 18% --- No Annual Fees --- No prepayment Fee

--- Appraisal $310-490 + $150 Processing Fee --- Rate turns Variable after 12 months. Can't lock rates. No max rate rise/fall per year.

Option 3:

--- Promotion: 3.99% Fixed for 60 months --- Floor rate: 4.25% --- Ceiling Rate: 18% --- No Annual Fees --- No Prepayment fees

--- Appraisal $425 + $400 Processing Fee --- Rate turns Variable after the 60 month promo period. Cant lock rate. No max rate rise/Fall per year.

Any advice or input would be greatly appreciated, thanks in advance!

David Arehart