HELOC lender help PLEASE!!!

Rental Property Investor · Wakeman, OH · Member since 2020 · 8 posts · 5 votes

All these "approval in 5 minutes" lenders online for HELOCS that offer 13% interest rates.........Is this the going rate for a HELOC??

They all seem to have the same application software that does a soft credit pull and spits out results... For example "Movement mortgage" and "Homebridge"

Does everyone "shop around" for HELOC? Some people charge for appraisals and credit scores fees up front. So how do you shop around without wasting so much time and money? My mortgage broker I contacted through a FB ohio real estate page "Krichbaum Financial" just sent me a link to "Homebridge." Do i need a broker for that??

Thank you, getting frustrated.

James

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Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

Quote from @Ke Nan Wang:

Quote from @Theresa Harris:

I know someone who just did one through their regular bank. The rate was prime +1% (so 7.7%)-this is in Canada. It is higher than a mortgage rate here (6+%), but interest only.

So this is a dumb question and I apologize for my little knowledge in loan structure and policies. I just realized Canada has much better prime rate than US. So if a person have great credit score and income in the U.S., can they get a loan from a Canadian Financial Institution at a lower interest rate? Or another question, if the property is in U.S., can a homeowner get a HELOC from a Canadian bank???

I don't know how that works. I think if you are Canadian and want to buy a house in the US, you might be able to borrow from a Canadian bank. If you are American and want to buy in Canada, you can borrow from a Canadian bank. You could then take a HELOC on the Canadian property and use that money for whatever you wanted.

Our mortgages also work differently in that you may have a 25 year amortization period, but the term of the loan may be 5 years meaning after 5 years, you renew it at whatever the current interest rate is that the bank will give you (there are no fees associated with the renewal if you are at the same bank). They just started doing 7 and 10 year terms which I wish I knew about when I renewed my mortgages last time as I'd have taken that option with the lower interest rates.

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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
3y
Yes you do homebridge is good heloc option. 70cltv and 1unit max - it’s wholesale side so you will need to submit through your broker
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
Quote from @James Duke:

All these "approval in 5 minutes" lenders online for HELOCS that offer 13% interest rates.........Is this the going rate for a HELOC??
They all seem to have the same application software that does a soft credit pull and spits out results... For example "Movement mortgage" and "Homebridge"
Does everyone "shop around" for HELOC? Some people charge for appraisals and credit scores fees up front. So how do you shop around without wasting so much time and money? My mortgage broker I contacted through a FB ohio real estate page "Krichbaum Financial" just sent me a link to "Homebridge." Do i need a broker for that??
Thank you, getting frustrated.

James

Talk to a local credit union, are rates out our CU are around 7.75%
ON another note though, we buy loans on the secondary market and the HELOC's / 2nd's we are seeing being sold right now are between 10-14% interest rate, but many of these are past the initial lockup period.
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James Duke
OP
Rental Property Investor · Wakeman, OH · Member since 2020 · 8 posts · 5 votes
3y
Thank you for all your input. I will start to target my local credit unions.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
I know someone who just did one through their regular bank. The rate was prime +1% (so 7.7%)-this is in Canada. It is higher than a mortgage rate here (6+%), but interest only.
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Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
3y
@James Duke, You might also try KeyBank, which lends in Ohio. Or small community banks, and local credit unions.
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James Duke
OP
Rental Property Investor · Wakeman, OH · Member since 2020 · 8 posts · 5 votes
3y
Thank you Kerry!
1 Reply
Ke Nan Wang
Developer · St. Augustine, FL · Member since 2018 · 311 posts · 384 votes
3y
Quote from @Theresa Harris:

I know someone who just did one through their regular bank. The rate was prime +1% (so 7.7%)-this is in Canada. It is higher than a mortgage rate here (6+%), but interest only.

So this is a dumb question and I apologize for my little knowledge in loan structure and policies. I just realized Canada has much better prime rate than US. So if a person have great credit score and income in the U.S., can they get a loan from a Canadian Financial Institution at a lower interest rate? Or another question, if the property is in U.S., can a homeowner get a HELOC from a Canadian bank???
1 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
Quote from @Ke Nan Wang:

Quote from @Theresa Harris:

I know someone who just did one through their regular bank. The rate was prime +1% (so 7.7%)-this is in Canada. It is higher than a mortgage rate here (6+%), but interest only.

So this is a dumb question and I apologize for my little knowledge in loan structure and policies. I just realized Canada has much better prime rate than US. So if a person have great credit score and income in the U.S., can they get a loan from a Canadian Financial Institution at a lower interest rate? Or another question, if the property is in U.S., can a homeowner get a HELOC from a Canadian bank???

I don't know how that works. I think if you are Canadian and want to buy a house in the US, you might be able to borrow from a Canadian bank. If you are American and want to buy in Canada, you can borrow from a Canadian bank. You could then take a HELOC on the Canadian property and use that money for whatever you wanted.
Our mortgages also work differently in that you may have a 25 year amortization period, but the term of the loan may be 5 years meaning after 5 years, you renew it at whatever the current interest rate is that the bank will give you (there are no fees associated with the renewal if you are at the same bank). They just started doing 7 and 10 year terms which I wish I knew about when I renewed my mortgages last time as I'd have taken that option with the lower interest rates.
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Dennis Muno
Lender · Denton, TX · Member since 2023 · 349 posts · 80 votes
3y
I would recommend you try another mortgage broker locally, who is close to you

Your mortgage broker should be shopping and providing you with HELOC options, costs, fees, and not just directing you to the lender page, in my opinion. That is poor service.

Yes, it is best you shop around. The more you shop, the likelier you are to find something that works better for you

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James Duke
OP
Rental Property Investor · Wakeman, OH · Member since 2020 · 8 posts · 5 votes
3y
Thank you for the advice!! I will go that. I appreciate your time!!
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Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
3y
@James Duke, what was the result of your searching?
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