Unsecured LOC closing cost, what’s too much?

Question

Hi BP Community,

I’m trying to get money for my real estate investment business. I’ve never done a LOC before and I’m having an issue determining if this is a good deal or not. The broker is quoting me a 6.25% variable interest rate for an interest only $250k unsecured LOC with 7% closing cost. I currently have a high 700 credit score rating, and have worked very hard to maintain it. At a minimum 7% closing seems pretty high.. Is this a good deal or should I be able to do better? What’s the standard unsecured LOC interest rate and closing cost%?

Thanks in advance Elle

Wayne Brooks · Answer

Credit (cards) with Office Depot, Home Depot, office max, lowes, etc. An 800 Fico with $100k or less a year income, and probably that much cash, wouldn’t qualify for a $250k unsecured line of credit.....just the way it is.

Eloise Reese · Answer

Wayne, Thank you for your response.

What are “trade lines”, and how do they differ from a LOC?

Ann Marie Rosen · Answer

That does seem quite high.

Wayne Brooks · Answer

It’s likely a scam, or a bunch of “trade lines” at vendors. Best bet, go to your bank that you normally use. Lenders don’t just hand out insecured LOC’s willy nilly.....and your overall financial strength (liquid assets) have more to do with it.

Unsecured LOC closing cost, what’s too much?

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