Real Estate Broker · Marietta, GA · Member since 2011 · 28 posts · 13 votes
After an exhaustive search I finally found two lenders that offer 1st position HELOC's on investment property. Trying to decide which one I should go with. In a nut shell it's 208K at in my opinion is a decently attractive rate for NOO, or take a 2% higher rate to have access to an additional 50K. If you know of any lenders that do HELOC's on investment property in Georgia I'd certainly welcome a recommendation.
Lender #1
65% LTV ( Prime -.17) = 7.33% Variable APR with loan limit of $208,000
$65 annual fee starting in year two
No closing costs, Max termination fee $300 within 3 years
Lender #2
70.00% LTV (Prime + 1.25%) = 8.75% Variable APR with a Limit of $224,000 75.00% LTV (Prime + 1.50%) = 9.00% Variable APR with a Limit of $240,000 78.13% LTV (Prime + 1.625%) = 9.125% Variable APR with a Limit of $250,000 80.00% LTV (Prime + 1.75%) = 9.25% Variable APR with a Limit of $256,000
$100 annual fee starting in year two
No closing costs, need to repay closing costs if closed within 2 years
@Adam A. since we only use HELOCs for temporary money I would just take the higher LTV. The interest rate to me is insignificant since I'm only keeping a balance on the Line for 2-4 months type of thing. Take the most amount and that way you can do more deals.
After an exhaustive search I finally found two lenders that offer 1st position HELOC's on investment property. Trying to decide which one I should go with. In a nut shell it's 208K at in my opinion is a decently attractive rate for NOO, or take a 2% higher rate to have access to an additional 50K. If you know of any lenders that do HELOC's on investment property in Georgia I'd certainly welcome a recommendation.
Lender #1
65% LTV ( Prime -.17) = 7.33% Variable APR with loan limit of $208,000
$65 annual fee starting in year two
No closing costs, Max termination fee $300 within 3 years
Lender #2
70.00% LTV (Prime + 1.25%) = 8.75% Variable APR with a Limit of $224,000 75.00% LTV (Prime + 1.50%) = 9.00% Variable APR with a Limit of $240,000 78.13% LTV (Prime + 1.625%) = 9.125% Variable APR with a Limit of $250,000 80.00% LTV (Prime + 1.75%) = 9.25% Variable APR with a Limit of $256,000
$100 annual fee starting in year two
No closing costs, need to repay closing costs if closed within 2 years
Hey Adam, I've been doing the same search for a while now.