HELOC vs. Home Equity Loans

[Aaron Huckels]

Wondering what the pros and cons of both a HELOC and home equity loan is. And which would be better in terms of APR, Monthly payments, etc

[Brett Miller]

Hi Aaron!

I opened a HELOC 3 years ago and I love it. One main reason. You don't pay any interest on it unless you use it. Also i made my HELOC payments interest only which keeps payments super low. I don't need to pay principal since i try to pay off my HELOC after refinancing my deals.

Hope this little tidbit helps 

Brett

[Aaron Huckels]

Awesome, is there any closing costs you have to pay when you go through the HELOC process?

[Brett Miller]

Yes there are closing costs but it's minimal. In fact I think I had to pay around 1k to get it set up. There were more closing costs but I didn't have to pay them if I kept my HELOC open for at least 2 years, which I have of course.

[Conner Olsen]

@Aaron Huckels Call some local banks in your area. I was quoted around $300 to open a HELOC. Call multiple because the terms vary widely from bank to bank, it's not like a 30-year fixed rate mortgage where they are all pretty similar.