Best banks for First Lien Heloc's in Green Bay and/or Wisconsin
I have recently come across a strategy that would shave my mortgage from 30 years down to 10ish years. I would basically convert my mortgage into a first lien Heloc. A calculator to see if this strategy would work for you can be found here: https://replaceyourmortgage.com/home-equity-line-o...
Assuming you are disciplined and have good cash flow Heloc's seems to make so much sense vs. a mortgage. Currently I'm sitting on thousands of dollars that I'm saving up for my next property. That money is earning me nothing in my checking and I don't want to put it into my mortgage because then I won't have it for the down payment I need. If I had a Heloc I could put all of my income into it and then take it out as I need it which would reduce the interest I pay greatly.
I live in the Green Bay, Wisconsin area and currently bank with Wells Fargo. I met a banker there and their program seems to be pretty decent. I am curious if anyone knows of other banks/credit unions in the Green Bay area or anywhere in Wisconsin that have a great first lien Heloc product? Since I see this as an excellent strategy that will only gain traction we can use this post to gather all the information about these that we can:
1. UW Credit Union: The person I talked to didn't know very much except they made it sound like they could only do 2nd lien Heloc's
2. Nicolet Bank: The person I talked to didn't understand the strategy at all and kept talking about me switching my accounts to them and that a Heloc would be a terrible idea
3. Wells Fargo: The lady I talked to had a lot of experience but 0 with my exact strategy but saw how it could work well. These are all of the answers she told me and I'm sure at least a couple of them may not be right:
-No opening/closing costs
-$75 annual fee
-10 year draw period and she made it seem like it would be really easy to do another 10 years after that
-The interest rate is based off of the prime (which is currently 4.25%) + at least a couple points
-First Lien Heloc is doable as well as having multiple Heloc's open
-You can deposit your income directly to your Heloc in person at the bank; or you can do a mobile deposit on your phone to your checking account and then transfer that over to your Heloc within the next 1-2 days
-I have here 80-85% for personal residence and 60% for investment properties ex. my duplex is worth probably $190k; * .8 = $152k - $123k remaining on mortgage = I would be able to get $29k in a Heloc
-She told me I could choose between a fixed and variable rate but everything I've heard seems to be that this fixed isn't possible or comes with a catch??
-Debt to Income Ratio example: 1. $2,000 (pre-tax) income from job 1 2. $1,000 income from job 2 3. $500 Commission from job 1 4. Owner Occuppied duplex $1,575 in rents * .75 = $1,181 - $950 mortgage = $231 income 5. My only debt then would be say $100 from the min. payment from a credit card; so my DTI would be $100ish/$3,731 = 2.7ish% which would be really good; I didn't ask but it seems to be that most banks can go up to 45ish%