Are these HELOC terms good or bad

4 Replies

Hello I'm shopping for a Heloc. Today I spoke with someone from a company called Lower. I wanted to see what you guys thought of their terms. 

95% Equity on my primary

10 Yr Draw period

20 Yr Repayment period

Rate based off of wall street prime

close is 4-6 weeks

$8k (Estimated on the high end) closing costs tacked onto the back end of mortgage. 

Take over the 1st lien position

      The 8k in closing costs seems way high, but the rest seems great. First lien HELOCs are the most powerful investing tool I know of.

      I think I'd look for another bank or institution that offers the first lien HELOC and compare costs, but you are absolutely onto the right product so in general, pursue that with determination.

      And to avoid assumption, check out velocity banking if you haven't already. The concept was created for first lien HELOC holders, and it's the best wealth accelerator I can imagine.

      Originally posted by @Russell M. :

      I think it's a higher closing cost because they are allowing me to use 95% equity. So 8k for a 220k line of credit. I will check out velocity as well. Thanks for your input. 

      Look up credit unions in your area. They tend to have good rates. I am happy to refer you to my CU, they underwrite CONUS I believe. $8K closing cost is ridiculous IMO. 

      Nick, I would appreciate that. The credit unions I've spoke with so far will open a line of credit for 80% of the equity. I believe this company I'm speaking with right now said that they give free Re-fi after this transaction. I'm going to get more details this week.