Rental Property Investor · Pittsburgh | Chicago · Member since 2016 · 115 posts · 54 votes
Hi BP: Can anyone recommend a good bank with a low rate for a HELOC that does not have a mandatory withdrawal at closing? I've been looking at a few banks, both national and local, and many of them require you to draw a minimum at closing. My property is in Chicago, but not sure that really matters, but would appreciate recommendations on banks that anyone has had a good experience with.
@Jason H. My HELOC was/is with PNC...don't recall them making us take a draw, but if we did I know we paid it back immediately. Even so, what's the issue with taking the minimum draw and just paying it right back?
@Jason H. My HELOC was/is with PNC...don't recall them making us take a draw, but if we did I know we paid it back immediately. Even so, what's the issue with taking the minimum draw and just paying it right back?
I worked for Chase bank for 14 years and would recommend taking a draw as a safety net for cash on hand. At any point a bank can freeze your credit line and then you won't have access to the cash, so I would recommend taking a draw, depositing it into your checking account and then pay it back to help build your credit.
@John Casmon@Henry H.@Dorothy Wulf Thanks. You guys bring up good points. I guess it never hit me to just pay the draw back the following day. This is why I'm in BP...for the great feedback.