Hi Everyone, So I am trying to get a HELOC to use for my first property investment. I have called some banks and the fees are never-ending; Interest rates are high but from what I understand it is like a credit card and only accumulates from the daily balance so if I pay more than one payment a month I can get somewhat ahead of some of the interest.
My actual question is: does anyone know of a Bank/Credit union with the best rates and terms
@Robert B. , use one of the online calculators to determine your monthly interest costs. It is typically interest only payments for the first ten years. I find it very reasonable per month at current interest rate levels.
Jason Gines, Attorney in New York (#4767281)
@Robert B. Hi Robert. Your rate is determined by a number of factors. Some of those factors include; FICO score, Debt to asset ratio, income, property value, amount of equity in said property and finally the Prime rate. I use HELOC's for my down payments and have found the rates to be very good.
What rates are you seeing?
thanks , they are in the 4s; then depending on like what you said/+1-3 above prime. One credit union is like 4.25 at 80%ltv, 4.5 at 85% ltv, and then anything above 90%-100% gets >5-7.5%. Also depends on your status with the bank as well
Just trying to get a feel, I have 70k in equity, but don’t want big interest rates so I may go to like 85% level
@Robert B. Cost of money is nothing, but it could be everything if you do not have the funds needed to do a deal. Better to have it, not need it, than to not have it and lose a deal. Once you create the HELOC, you cannot go back and change it, without starting all over. Dang, you can get 100%, that is awesome!
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