What are you spending your HELOC on?

[Alan Davidson]

Ok BPers. Need some help. I'm taking a HELOC out on my primary residence to purchase a rental. During the application Chase asked if I would like an initial draw. If I took the initial draw I would get a lower interest rate. So I said yes. I would "remodel" my master bedroom and bath. 30k. I have no intention of remodeling anything. And will just return the money to Chase. However Chase is now asking me for more detailed plans on my remodel.

My question. Will I have to endure this type of questioning for everything I purchase with the HELOC? Or will Chase go away after the application and let me use the money as I want?

[CJ M.]

@Alan Davidson

Interesting. I just signed on a HELOC at HNB (I didn't take an initial draw).they never said anything about providing details as to what I'd be using it for.

My guess is, after you sign the papers they will stop asking and just send you a monthly bill for the interest.