I need a broker for a HELOC /primary residence in Houston, Texas

[Flor Park]

Hello everybody,

I am looking for a broker to get a HELOC from my primary residence. I live in Houston, Texas.

[Jason Wray]

Flor,

There are a lot banks that offer Helocs Quorum, Suntrust, Bethpage CU, PNC all have good options for a primary heloc.  Have you compared a cash out refinance versus a heloc yet in terms of monthly payment.  If the answer is No because of a lower rate on the first mortgage I would still tell you to run the numbers.  Heloc versus a 30 year fixed even if the first rate is increasing offer more than just payment benefits.

A HELOC is an open end mortgage a.k.a debt obligation like a credit card and goes against your DTI debt to income ratios. A Heloc can "Never" be used as an asset or for PITI reserves and can hurt your chances of buying another investment property. Cash out refinance is cash in hand and can always be used as an asset or as PITI reserves needed to qualify for a mortgage.

If you need a heloc for a small project or renovation under $25K it an okay tool but anything over that usually is is better suited over a 30 year.  Keep in mind if you are worried about losing a low rate these rates will get better so you can always refinance in 12-24 months.

The other thing to consider is majority of home owners that take out a heloc refinance in 3-5 years to consolidate that line of credit regardless.  The biggest risk is if for any reason you credit score drops or you go late on any payment on credit even by accident or error.  The bank/lender holding that Heloc will close or reduce your line of credit.  That can leave a project/renovation uncomplete and cause a lot of headache.  Hope that helps offer some additional thoughts.