Phoenix, AZ · Member since 2019 · 15 posts · 8 votes
Hello! I am interested in opening a HELOC to tap into the equity of my house without changing my current interest rate on my mortgage. I have been shopping lenders for a few days and they offer varying numbers for max allowable credit and interest rate. I can't decide which is more important between the two. For example (these are hypothetical), one lender will give me a credit line of $100,000 at a 6.5% interest rate, but another lender will give me $150,000 at an 8% interest rate. I don't have a particular investment in mind yet, but just want to get the credit line open. What do you think? Thanks!
Hello! I am interested in opening a HELOC to tap into the equity of my house without changing my current interest rate on my mortgage. I have been shopping lenders for a few days and they offer varying numbers for max allowable credit and interest rate. I can't decide which is more important between the two. For example (these are hypothetical), one lender will give me a credit line of $100,000 at a 6.5% interest rate, but another lender will give me $150,000 at an 8% interest rate. I don't have a particular investment in mind yet, but just want to get the credit line open. What do you think? Thanks!
For BRRR I'd take the $150. Access to the capital is often more important than a couple % on the rate.
Chances are though, the higher rate loan also has higher closing costs and maintenance fees.
Tell us about origination costs (like full appraisal vs desktop) and maintenance fees for each.
Hello! I am interested in opening a HELOC to tap into the equity of my house without changing my current interest rate on my mortgage. I have been shopping lenders for a few days and they offer varying numbers for max allowable credit and interest rate. I can't decide which is more important between the two. For example (these are hypothetical), one lender will give me a credit line of $100,000 at a 6.5% interest rate, but another lender will give me $150,000 at an 8% interest rate. I don't have a particular investment in mind yet, but just want to get the credit line open. What do you think? Thanks!
For BRRR I'd take the $150. Access to the capital is often more important than a couple % on the rate.
Chances are though, the higher rate loan also has higher closing costs and maintenance fees.
Tell us about origination costs (like full appraisal vs desktop) and maintenance fees for each.
Ok good to know. Each option has no closing costs as long as I don’t close the line within 3 years. No appraisal fee either. They each have an annual fee that is insignificant ($50 vs $75 annually).