Heloc lenders and differences?

[Josh Mac]

Hello everyone,Happy Friday to you all!I was wondering if there are any major differences in lending companies that work with home equity lines of credit (heloc)?Also if anyone has one they could recommend it would be appreciated,thank you!

[Kari Flores]

Hi Josh - we offer couple different HELOC options and LOC. CU and small local banks usually have the best terms/rates. I offer a 5 day funding, instant decision HELOC up to 80% on your primary and 70% on investment (not in LLC) 1 & 2 unit properties. Those use a AVM based off Zillow or electronic records on file. We also offer 2nds that do an actual appraisal to get a higher, accurate value. Depending on your situation, sometimes, it is better to do a cash out refi. I would be happy to discuss our options with you. Feel free to reach out

[Devin Peterson]

Quote from @Josh Mac:

Hello everyone,Happy Friday to you all!I was wondering if there are any major differences in lending companies that work with home equity lines of credit (heloc)?Also if anyone has one they could recommend it would be appreciated,thank you!

 Are you inquiring on a primary or a investment property?

[Josh Mac]

Quote from @Devin Peterson:

Quote from @Josh Mac:

Hello everyone,Happy Friday to you all!I was wondering if there are any major differences in lending companies that work with home equity lines of credit (heloc)?Also if anyone has one they could recommend it would be appreciated,thank you!

 Are you inquiring on a primary or a investment property?

 On my primary residence.

[Josh Mac]

Quote from @Kari Flores:

Hi Josh - we offer couple different HELOC options and LOC. CU and small local banks usually have the best terms/rates. I offer a 5 day funding, instant decision HELOC up to 80% on your primary and 70% on investment (not in LLC) 1 & 2 unit properties. Those use a AVM based off Zillow or electronic records on file. We also offer 2nds that do an actual appraisal to get a higher, accurate value. Depending on your situation, sometimes, it is better to do a cash out refi. I would be happy to discuss our options with you. Feel free to reach out

 Thank you also for your reply and offers.

[Steve Vaughan]

Quote from @Josh Mac:

Quote from @Devin Peterson:

Quote from @Josh Mac:

Hello everyone,Happy Friday to you all!I was wondering if there are any major differences in lending companies that work with home equity lines of credit (heloc)?Also if anyone has one they could recommend it would be appreciated,thank you!

 Are you inquiring on a primary or a investment property?

 On my primary residence.

We used our local community bank (or CU) we already had an account with.  It took about 4 weeks, but had few fees. Small regional banks/CUs tend to give back to our communities so I like supporting them. 

The downside if you plan on defaulting on this or any loan you have an account with is cross-collateral.  They can scarf your checking/savings acct to satisfy defaults.  

[Jonathan Bock]

@Josh Mac

These usually float with the prime rate so factor that in too, it's 8.5% currently but many offer IO for repayment which can be attractive for some.   So if the Fed cuts in upcoming meetings your rate would decrease.  

Usually, with a low LTV you may get prime less a point and a high LTV maybe closer to prime plus one it always depends. Lenders are always competing so shop around.

@Steve Vaughan is right on point per usual, shop local first build a relationship and if strategic default is in your cards yea not a good play here you'll sign a confession of judgement.    

[Josh Mac]

Quote from @Jonathan Bock:

@Josh Mac

These usually float with the prime rate so factor that in too, it's 8.5% currently but many offer IO for repayment which can be attractive for some.   So if the Fed cuts in upcoming meetings your rate would decrease.  

Usually, with a low LTV you may get prime less a point and a high LTV maybe closer to prime plus one it always depends. Lenders are always competing so shop around.

@Steve Vaughan is right on point per usual, shop local first build a relationship and if strategic default is in your cards yea not a good play here you'll sign a confession of judgement.    

That pretty much sums it up thank ypu also.I am curious what would be a reason or reasons to strategically default on the loan?Thanks!

[Steve Vaughan]

Quote from @Josh Mac:

Quote from @Jonathan Bock:

@Josh Mac

These usually float with the prime rate so factor that in too, it's 8.5% currently but many offer IO for repayment which can be attractive for some.   So if the Fed cuts in upcoming meetings your rate would decrease.  

Usually, with a low LTV you may get prime less a point and a high LTV maybe closer to prime plus one it always depends. Lenders are always competing so shop around.

@Steve Vaughan is right on point per usual, shop local first build a relationship and if strategic default is in your cards yea not a good play here you'll sign a confession of judgement.    

That pretty much sums it up thank ypu also.I am curious what would be a reason or reasons to strategically default on the loan?Thanks! 

I wasn't referring to a strategic or planned default, but wanted to point out cross-collateralization the bank/CU having the right to use your checking/savings acct funds in case there was a probability of your default.   

This is more likely in an auto loan, signature loan or credit card situation than a mortgage or heloc, but it's there. 

[Josh Mac]

Quote from @Steve Vaughan:

Quote from @Josh Mac:

Quote from @Jonathan Bock:

@Josh Mac

These usually float with the prime rate so factor that in too, it's 8.5% currently but many offer IO for repayment which can be attractive for some.   So if the Fed cuts in upcoming meetings your rate would decrease.  

Usually, with a low LTV you may get prime less a point and a high LTV maybe closer to prime plus one it always depends. Lenders are always competing so shop around.

@Steve Vaughan is right on point per usual, shop local first build a relationship and if strategic default is in your cards yea not a good play here you'll sign a confession of judgement.    

That pretty much sums it up thank ypu also.I am curious what would be a reason or reasons to strategically default on the loan?Thanks! 

I wasn't referring to a strategic or planned default, but wanted to point out cross-collateralization the bank/CU having the right to use your checking/savings acct funds in case there was a probability of your default.   

This is more likely in an auto loan, signature loan or credit card situation than a mortgage or heloc, but it's there. 

 Haha,ok...I was wondering what is this strategy called?Understood,thank you.

[Jonathan Bock]

@Josh Mac

Was not my intention to confuse you with that you will see it more often in CRE.

Community banks may ask for deposit relationship minimums and even deposit escrows at times depending on circumstances too.   

Best of luck on your real estate journey!