HELOC and rates/suntrust

2 Replies

hi everyone i am a newbie and i have a question about a line of credit i want to take on my personal residence.

i have around 650k equity on a million dollar home with 350k (mortgage + old line of credit combined). i wanted to take a new line of credit of about 500k to pay off the old mortgage and line of credit to be left with around 150k cash for some home improvements. i have been seeing rates around 5% but suntrust (link below) has an offer for 3.75% plus -.25% discount if paying from a suntrust account making the rate 3.5%. want to know if this is too good to be true or if this 3.5% is on top of some other rate. i really don't know much about this.

and also i only make 70k a year with no debt is it possible to qualify for 500k with such little income? i originally just wanted 150k loan cash but they told me i should apply for 500k and pay off the other two loans for a better rate with them

https://www.suntrust.com/loans/equity-line-of-credit

Originally posted by @Susu Mulligan :

@Chris Mason

hi chris im new to the site but have noticed from browsing that you always give good advice on lending and HELOC. if you have any input that would be great!

 That's actually a great example of how much terms/conditions vary on HELOCs.

One thing I don't see specified, which means usually they're more conservative in this area, is CLTV. If they're at 80%, that would only get you ~$450k. If it's 75% or 65%... give them a call.