Best HELOC rates in California

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Best HELOC rates in California

Hashmat B.
Brentwood, CA · Member since 2015 · 6 posts · 5 votes
Hello all, I currently have a checking and savings account with Citibank. I want to obtain a Heloc loan to have more cash to BRRRR. I have 50k in savings and would like to obtain a line of credit for 100k giving me total of 150k to invest with. I will only pull what I need from the 100k line of credit. I want to purchase my first out of state investment rental property to BRRRR with this money. I currently live In the SF Bay Area in California. Anyways I just completed my application. Citibank offered me the following: 3.99% variable for 12 months, then 5.49% to 5.99% once the credit check and further details have been processed. There are no closing costs as long as the account is open 3 years. No annual fees. Once I refinance the BRRRR’ed property I will pay the heloc off right away. My question is, is this a good rate? Are there better deals out there? I have checked with US Bank and Bank of America but the differences were not significant enough for me to open an account with them. Just making sure I don’t have any regrets.
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Jonathan PfluegerPro Member
Ben Lomond, CA · Member since 2016 · 338 posts · 337 votes
8y

@Hashmat B.

Real Estate is all about relationships... With that said, I like to use small local banks for as much of my real estate needs as I can. In this way, I can create direct relationships with lenders that work and live in my community. When I walk into a local bank they automatically know me and more often than not the person that takes my application and interviews me is the person, or one of the persons, that will be deciding whether not I get the loan. 

I say that cause if the loan products offered from both types of banks are similar I always go with the smaller bank and "bank" (forgive the pun) on the future relationship I am building. With national banks you are just a number and more often than not, not a very big number (at least in their calculation). 

Jonathan

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  • John Gochangco
    Lodi CA · Member since 2018 · 27 posts · 5 votes
    8y

    @Irene Amido Thanks that would be great!

    0Reply
  • Kevin Kraver
    Rental Property Investor · San Jose, CA · Member since 2018 · 18 posts · 5 votes
    7y

    Shopping for HELOC on primary San Jose, CA primary residence. I have one lender at Prime but has a $250k Max. Anyone know of banks that will go up to $350k (85% LTV) or $400k (90% LTV) ?

    0Reply
  • Henry Ngo
    Los Angeles · Member since 2018 · 13 posts · 0 votes
    7y

    Here is what BBVA is offering me. Doesn't look like a great deal to me. My primary was appraised at $580K, currently owe $425K. HELOC amount is $70K. I was hoping to get the same deal as the previous posters (Prime minus margin) but it looks like that's over. I'll shop around some more.


    Your final base rate is 7.81% ( prime +2.56%)

    *** you are also eligible for an additional 1% discount for setting up an automatic payment out of your compass account ***

    *** If you pull 50k within the first 15 days of closing and leave it outstanding for 3 Months you will receive an additional 1% discount.

    If anybody has done a HELOC in California recently and got a great deal, please let me know.

    0Reply
  • Kit Hentzen
    Flipper/Rehabber · La Habra, CA · Member since 2018 · 4 posts · 2 votes
    7y

    @Henry Ngo That does seem pretty high. Although rates are on the rise. I am currently looking for different HELCO companies. One I have been reading up on is Patelco... 

    1Reply
  • David Friedman
    Property Manager · San Bernardino, CA · Member since 2014 · 473 posts · 238 votes
    7y

    You might be able to get a better introductory rate from a mortgage broker. You are just trying large banks. Eventually, all banks are going to want to get your rate up after you've used your LOC for a year. We were able to get an introductory rate of 3% in Los Angeles for a year. Then it goes up to around 5%.

    0Reply
  • John Gochangco
    Lodi CA · Member since 2018 · 27 posts · 5 votes
    7y

    @David Friedman Which mortgage broker would you recommend for HELOCs. The broker I use for conventional loans doesn't really delve in helocs. 

    0Reply
  • David Friedman
    Property Manager · San Bernardino, CA · Member since 2014 · 473 posts · 238 votes
    7y

    The Shintani Group, Inc. in Los Angeles!

    Rates have gone up in the past month so no promises.

    0Reply
  • Ashley Cao
    Lender · Santa Clara, CA · Member since 2018 · 46 posts · 74 votes
    7y

    Reviving this post to see what type of rates you’re seeing for HELOCs these days.

    Star One Credit Union is offering prime only, 80%LTV; over $250k will incur $1k-$2k closing costs.

    WellsFargo offered lower rate (3.89?) for first year but have to draw upon closing. I’m thinking you can draw to lock the rate and then just put the $ back in next day. Is that possible ?

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