so I just got my HELOC secured here in Austin on my primary home through BBT. Man, it was a PITA and took a lot of time. It seems that TX lending laws make the process much more difficult than my friends in other states. Anyway, does anyway else use a HELOC here? I'm interested to see how I utilize this.
I used State Farm Bank and it was a long process as well.
I used it to pay off my primary home mortgage in order to speed up getting rid of that debt. As the balance gets a little lower, I will then use the HELOC funds to aggressively start paying off mortgages on SFH rentals since my goal is to have those rentals debt free. Once they are debt free, I will then feel more secure and more risk tolerant.
Many will disagree with the strategy of paying off the debt but what makes me happy is being comfortable and that makes me feel comfortable.
Thanks for the share. I appreciate your perspective on paying off the debt; personally, I'm ok w/ carrying low-rate debt and arbitraging a higher rate elsewhere, but to each their own.
Did you use your HELOC at all to use as fast-cash for a rental purchase?
I'm just getting started and looking to network and meet peers in the area. I don't own any rental units yet but am ready to get into it.
I got a HELOC a while back through Pentagon Federal Credit Union. I almost fell out of my seat when they told me how long it would take. I thought it was just them but I guess not.
@Andrew Allen how long did Penfed take?
@Nina Hayden I don't recall exactly. 60, 90 days?
So are yall using your HELOC often?
I used Pentagon Federal and it took about 3 weeks. Also they do HELOCs on investment properties too.
I used Amplify Credit Union to obtain my HELOC and it was a quick and easy process...about 2-3 weeks total. They also had the lowest rates that I found. I then used my HELOC to purchase a rental property in cash. I'm in the process of refinancing it now with Better Mortgage...curious to hear if anyone has closed a loan with them as well?
Awesome! Was it easy to pull out the cash for the investment purchase? What rate do you have on the HELOC? Higher than the refi-mortgage?
I imagine using the HELOC allows you to quickly close on a property, right? rather than waiting the 30-60 days for a mortgage?
@Adam L. It was very easy to pull out cash for the purchase and my rate on the HELOC is lower than on the refi...4.5% vs. 4.875%. I was able to close very quickly using all cash and it also gave me an edge in a multiple offer situation. Very happy I went with a HELOC.