Updated almost 9 years ago on . Most recent reply
HIGH VALUE EQUITY CREDIT LINE 100% LTV
I have recently been approved through Key Bank for a high value equity line of credit with 100% LTV. Since I don't have very much equity I was only approved for $10,000 with an APR of Prime + 6.85% and $1,000 closing fee. At today's prime (4.25%) the total APR comes to 11.10%. There is also a annual fee of $50. I also would have to lower my deductible amount on the property which would up my insurance by $407/yr. So all together the HELOC would cost me $456/yr + the initial closing costs of $1000 just to have access to the funds.
I'm trying to decide if its worth those costs to have access to those funds for a safety net or to possibly use to acquire more cash flowing property. What do you guys think? I'm open to any help and suggestions! Thanks