Ask these questions before applying for Heloc
First off, what's a Heloc?
A Home Equity Line of Credit (HELOC) is a loan on your home and the amount of the loan is determined by the equity available. Its essentially like a credit card using the equity you have in your home.
I will list a few Heloc programs below (I'm not endorsing just giving you some examples). But before applying be sure to qualify the loans and make sure they aren't being sneaky with their fees. Here were my requirements and questions I asked when researching for my loan. Hope this helps!
No minimum draw fee
No lender fees
What’s the adjustment rate?
Reasonable Margin
Interest only option
No required balance
No cancellation fee
No annual fee
No inactivity fee
Periodic cap so interest can’t soar
they pay for appraisal
Examples in San Diego
calcoastcu.org
3.98 for first 12 months
prime rate- currently at 5% cap is 12%
first 10 years interest only- draw period.
no closing cost
early closing cost- $350-$600 fee if payed off in first 36 months.
$10,000 min draw.
Mutual of Omaha
equity line- 5.75% first 6 months 2.99 FICO score better than 700
appraisal cost of $400 if you don’t bank there.
equity loan- 10 years 5 1/4 fixed
Northrop Grunham Federal credit union (directly from website)
Variable APR*4.50%Depending on the option chosen, each time an advance is taken the payment towards principal and interest (NGFCU does not offer an interest-only repayment option.) may be either amortized over 180 months or to the maturity of the HELOC.
Fixed APR*5.50% May elect the Fixed Rate on up to 60% of the approved HELOC limit. Minimum draw $10,000 per disbursement and up to 3 separate disbursements (no add-ons). Fixed rate cannot exceed maturity of the HELOC.
Cabrillo credit union
Rate can adjust monthly, but will never increase or decrease by more than 2% per year and is limited to a maximum interest rate of 10% greater than the initial rate.
Minimum interest rate is 4.25%. Loan offers a 10 year draw period and a 15 year repayment.
Balloon payment due on any unpaid balance at maturity date.
80% LTV maximum.
Property must be in California and owner occupied.