All Forum Posts by: Chris Chantavong
Chris Chantavong has started 1 posts and replied 27 times.
Post: Getting financing in Indianapolis
- Contractor
- Oahu, HI
- Posts 28
- Votes 17
@Account Closed Thanks for the response!
Post: Getting financing in Indianapolis
- Contractor
- Oahu, HI
- Posts 28
- Votes 17
@Account Closed how long would a property need to be seasoned before it can be proven as a viable source of income?
Post: Heloc to pay off mortgage faster
- Contractor
- Oahu, HI
- Posts 28
- Votes 17
Originally posted by @Nick Moriwaki:
Originally posted by @Chris Chantavong:
Originally posted by @Nick Moriwaki:
Originally posted by @Mike V.:
Originally posted by @Nick Moriwaki:
Originally posted by @Duc Ong:
Nick, which bank offered 90% LTV in Hawaii?
Thanks,
Duc
Originally posted by @Nick Moriwaki:
I would agree that an additional HELOC may be unnecessary and potentially less effective in your case. In my experience in Hawaii, I have worked with 1 bank that offered up to 90% LTV but I think that is very rare. Also, as mentioned, most banks will waive most of the loan origination fees associated with opening a HELOC, but I have not heard of a local bank that waives the appraisal. Doesn't hurt to ask though.
If you've been reading through the posts you'd know that I am a proponent of completely flipping your mortgage into a HELOC (i.e. - take the entire mortgage balance and swap that out for a HELOC with the same balance). I have many posts with a link to my spreadsheet to show the effectiveness of this strategy. When I get a chance I can post it again for you to take a look at and plug in your numbers or if you go through the past few pages of the thread you should be able to find a link.
For background, I started exactly where you are a few years ago - I paid 10% for a studio and was trudging my way along paying a mortgage + PMI for about a year before I found out about this HELOC strategy. I used a PLOC to knock my balance down enough to flip my remaining mortgage balance into a HELOC. The PLOC rate (7.5%) was much higher than my mortgage interest rate, but luckily I was able to take advantage of local promotional rates for HELOCs. Long story short, I used the strategy to save significant amounts of interest and put that immediately to use to get into buy and hold investing, which nets me more cash flow to facilitate the strategy.
But again, do your research and ask questions. Plug in your numbers and play around with the interest rates to see how the interest savings change based on different future scenarios. Also, many have mentioned that some banks may call the loan due if financial circumstances change and/or that they could freeze the LOC if your property value starts to dip. This paired with rising interest rates on variable rate LOCs may or may not be within your risk tolerance for my version of the strategy.
From what I've heard, Bank of Hawaii will go up to 90% LTV on owner occupant and investment properties. Currently I have one at 85% LTV. The others I've worked with are American Savings (80% LTV on owner occupant and 65% LTV on investment) and First Hawaiian Bank (80% LTV for owner occupant, but not sure about investments).
Not sure for in state residents but this is factually false for out of state investors. I've done a few deals with bank of Hawaii and they require 70% LTV for investment properties. (I live in California) I've yet to find anyone in Hawaii that will do it for less and I've contacted pretty much all of them. Their rates are consistently among the worst of my estimates and their online system also sucks. You can't even pull up previous statements online and need to call to have them emailed over. They seriously need a system upgrade and I try to avoid at all costs.
I don’t even have them on my ‘reach out to’ list anymore.
Interesting - I talked to the loan officer (albeit a a couple years ago) and he said they would do up to 90%. I'm thinking maybe it's because it was a first position HELOC, rather than second position? Or could be the out of state thing, but that seems a bit odd.
Bank of Hawai'i used to provide a first position HELOC up to 89.99% LTV on primary residences (I currently have that HELOC on one of my properties). However, I believe they have recently reduced that limit to 85% LTV.
The 70% LTV that Mike Verna is talking about is only on investment properties.
Was that 70% reduction recent too? I have 85% on my investment property. That was taken out just under 2 years ago though.
Sorry, got my numbers mixed up. You're correct. BOH allows 85% LTV on both primary residences and rental properties as long as they're in the first position. This is a reduction from 89.99% from about a year ago. Second position HELOCs are capped at 70% LTV (on Oahu).
Post: Heloc to pay off mortgage faster
- Contractor
- Oahu, HI
- Posts 28
- Votes 17
Originally posted by @Nick Moriwaki:
Originally posted by @Mike V.:
Originally posted by @Nick Moriwaki:
Originally posted by @Duc Ong:
Nick, which bank offered 90% LTV in Hawaii?
Thanks,
Duc
Originally posted by @Nick Moriwaki:
I would agree that an additional HELOC may be unnecessary and potentially less effective in your case. In my experience in Hawaii, I have worked with 1 bank that offered up to 90% LTV but I think that is very rare. Also, as mentioned, most banks will waive most of the loan origination fees associated with opening a HELOC, but I have not heard of a local bank that waives the appraisal. Doesn't hurt to ask though.
If you've been reading through the posts you'd know that I am a proponent of completely flipping your mortgage into a HELOC (i.e. - take the entire mortgage balance and swap that out for a HELOC with the same balance). I have many posts with a link to my spreadsheet to show the effectiveness of this strategy. When I get a chance I can post it again for you to take a look at and plug in your numbers or if you go through the past few pages of the thread you should be able to find a link.
For background, I started exactly where you are a few years ago - I paid 10% for a studio and was trudging my way along paying a mortgage + PMI for about a year before I found out about this HELOC strategy. I used a PLOC to knock my balance down enough to flip my remaining mortgage balance into a HELOC. The PLOC rate (7.5%) was much higher than my mortgage interest rate, but luckily I was able to take advantage of local promotional rates for HELOCs. Long story short, I used the strategy to save significant amounts of interest and put that immediately to use to get into buy and hold investing, which nets me more cash flow to facilitate the strategy.
But again, do your research and ask questions. Plug in your numbers and play around with the interest rates to see how the interest savings change based on different future scenarios. Also, many have mentioned that some banks may call the loan due if financial circumstances change and/or that they could freeze the LOC if your property value starts to dip. This paired with rising interest rates on variable rate LOCs may or may not be within your risk tolerance for my version of the strategy.
From what I've heard, Bank of Hawaii will go up to 90% LTV on owner occupant and investment properties. Currently I have one at 85% LTV. The others I've worked with are American Savings (80% LTV on owner occupant and 65% LTV on investment) and First Hawaiian Bank (80% LTV for owner occupant, but not sure about investments).
Not sure for in state residents but this is factually false for out of state investors. I've done a few deals with bank of Hawaii and they require 70% LTV for investment properties. (I live in California) I've yet to find anyone in Hawaii that will do it for less and I've contacted pretty much all of them. Their rates are consistently among the worst of my estimates and their online system also sucks. You can't even pull up previous statements online and need to call to have them emailed over. They seriously need a system upgrade and I try to avoid at all costs.
I don’t even have them on my ‘reach out to’ list anymore.
Interesting - I talked to the loan officer (albeit a a couple years ago) and he said they would do up to 90%. I'm thinking maybe it's because it was a first position HELOC, rather than second position? Or could be the out of state thing, but that seems a bit odd.
Bank of Hawai'i used to provide a first position HELOC up to 89.99% LTV on primary residences (I currently have that HELOC on one of my properties). However, I believe they have recently reduced that limit to 85% LTV.
The 70% LTV that Mike Verna is talking about is only on investment properties.
Post: Rental income is here.... Now What????
- Contractor
- Oahu, HI
- Posts 28
- Votes 17
@Tina Acevedo I'm in the process of renting out my condo and purchasing a 2nd property myself. Let me know if you ever want to grab some coffee or a beer and chat real estate. I'm actually working on a project on your side of the island for the next couple of months
Post: Looking to change my life.
- Contractor
- Oahu, HI
- Posts 28
- Votes 17
Not a seasoned investor, but just wanted to swing by and provide some words of advice and encouragement. I'm sure you are already aware of this, but the solution to eliminating debt breaks down one main thing, increasing your cash flow. There are three main avenues to achieve this; 1) Reducing Expenses, 2) Increasing Income, or 3) Both. I would suggest tightening up your budget, house hacking, and look into finding side or weekend work (which should be fairly easy since you are in the construction field). I can totally relate to your situation since we are both in the same career fields and living/working in this beautiful (but expensive) state. But keep your head up and I'm sure you'll get through it!
Post: Oahu Hawaii looking for local investors
- Contractor
- Oahu, HI
- Posts 28
- Votes 17
@Kadeb Kaden I'm in a very similar situation as you. Let me know if you and @Lane Kawaoka do meet up, I would love to join in on the conversation. Mahalo!