HELOCs, any difference between banks?

5 Replies

Hey everyone, in the last few days I've been looking at getting a HELOC to fund a few deals coming up and I've talked to mortgage brokers at a few big banks like wells fargo and chase.

The HELOC products are pretty much the same, fees are pretty much the same + or - $100, as are the terms interests all around the 4% mark, almost to the point where all these banks seem like pretty much the same company.

In such a situation is there anything I should look out for? Is one bank better than another? Any perks or benefits to going with one of the big names? Or should I just pick the banks that I like the best?

This is my first time getting a HELOC so apologies in advance if the question seems silly.

Make sure you ask what the minimum payment will be. Some allow interest only payments, others have something like 1% of the loan amount as the minimum. All other things being equal I would look for the interest only option. Also- be sure to check your local credit unions. Around here they offer much better rates and fees.

You say the fees are basically the same within $100 of each other. My suggestion would be to never ever pay fees for a HELOC. I never have and never will. I would never pay a bank a fee for the privilege of making a profit off of me.

I would agree with the interest only HELOC. That's what I have and always pay a bunch of principal but it's nice to know I am not required to in the event I ran into a money crunch.

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My bank offers the option of turning the balance into a fully amortized 15 year mortgage with the current interest rate locked in anytime I want for 50 dollars. If I pay the mortgage off early it turns back into a HELOC