All Forum Posts by: Rijm D.

They do lend on secondary or investment homes as far as I understand, just the loan to value is less, like 70 or 75%.

@Llewelyn A. Sounds about right. I posted the bank, website and the fine print that should explain the details. If I could find a regular Heloc with low enough rate I'd go for that instead, but none have as low rate as this one. Well. Thank all for the input, I hope Nathan reveals what product he has used there that sounded better if true.

@Stephan Kraus Hallo, I'd like to meet with you for the same reasons you mentioned. Like minded, besides we can do it in at least 2 languages. Rijm

Originally posted by @Nathan Gesner:

Originally posted by @Max T.:

@Nathan G.

Sounds more like a home equity loan, not a LOC.

Yes. He said he is getting a HELOC which is a Home Equity Line of Credit. That's the same product I just received and it was at a fixed rate, there's no obligation to ever use it in order to lock in the rate, and I only pay interest on the amount of funds borrowed.

HELOC Explained

It's a really busy Monday. Did I miss something?

 So Nathan. Are you saying you have a true Heloc available at the same rate somewhere else? 

My intention is to invest in 50 to 70 k properties in indy for buy and holds at hopefully 10% plus cash on cash. I thought at first to just use it all at once to buy 2 say 50K properties. That would be good at 4.49% for money I otherwise would not have deployed anyways. Then when I was there in July I met a banker that supposedly finances those kind of properties. So now I could possibly put 20% down each and stretch those 100k heloc money to 10 properties at 10k each down. 

Only difference now that it would have been easier to identify 2 properties "cash" faster than now possibly 10 over a longer time leaving it sitting around till the money goes to work and makes me more than it costs me, spread between 4.45% to cash on cash. 

I did look for a long time and could not find any better offer. Most helocs are prime plus, so at that point already what this rate is, plus their portion. So my thought is, if I could park the money and just leave it sitting somewhere at 3% and it costs me 2% about for a year till it is all reinvested, I am still not so bad off. I would have hoped too to just have a true line of credit locked in at a rate and just draw on it when ready. But maybe this will get me to act faster and not wait another year to jump on it all. I have a good understanding what I want and how the market looks there. Maybe I be one of those 0 to 10 deals in the first year guys. 

This one is with the new terms after January 1st. I had to apply by dec 31st, which I did. My terms are to borrow by Feb 28th. This one the rate did not change, stayed at 4.49% but the borrow by changed to March 31st. I had my partner apply. I did previously apply myself but did not follow through as I realized they would have asked her to cosign anyways as I write off too much with my small business. At that time last year it was 3.99% still. 

Here the fine print:

Disclosures

( 1 ) Loans subject to credit approval; terms and conditions apply. Offer is subject to change at any time. Minimum loan amount is $10,000. Minimum draw amount to avoid $30 fee is $500. Collateral must be owner-occupied, primary or secondary (no rentals) single family residential property, located in Nevada, with a maximum 85% loan to value. Properties for sale are not eligible. Property insurance is required, and other restrictions or conditions may apply. Effective 12/31/2018 and is subject to change at any time. 1.99% introductory APR is fixed for the first 6 months of account opening; variable APR of 5.50% - 7.63% after that. The variable APR is based on the Prime Rate as stated in The Wall Street Journal plus a margin and is subject to change without notice. Maximum APR is 25%. The interest rate will change effective with changes in the Index. Proceeds may not be used to refinance an existing home equity credit line unless the home equity credit line commitment amount is increased by at least $20,000, OR the existing Home Equity Credit Line is within its repayment period or the last 12 months of its draw period. An early closure fee will apply if line is closed within 36 months of the initial loan closing date. Other loan options are available. See banker for details.

( 2 ) EquityLock structured repayment option: Subject to credit approval. Terms and conditions apply. See a banker for full details. EquityLock structured repayment options are closed end, fully amortizing loans utilizing funds up to the maximum credit limit of your Home Equity Credit Line at a fixed 4.49% APR for up to 120 months (10 years). Minimum loan amount is $5,000. Requests will be honored during the promotional period only; expires March 31, 2019. Requests for an EquityLock addendum must be signed in branch. Funds may not be used to refinance an existing home equity credit line unless the home equity credit line limit is increased by $20,000 and the EquityLock is established for $20,000 more than the existing HECL payoff. A maximum of three EquityLock structured repayment options are allowed at any one time. The $25 conversion fee is waived during this promotional period. Any EquityLock requested after this promotional period will be subject to your Home Equity Credit Line Agreement terms and conditions. All other terms and conditions from your Home Equity Credit Line Agreement remain in effect.

Originally posted by @Nathan Gesner:

@Rijm D. Can you explain the product a bit more? I've never heard of a HELOC that requires you to borrow the entire amount within two months. A typical HELOC is like a credit card where the funds are available for you to us at any time. When you spend money from the HELOC, you pay interest on that amount. If you pay off the borrowed amount, your HELOC returns to the full balance and sits available for use without any interest payments.

Is yours different?

 It Is by nsbank.com

FEATURES & BENEFITS

No origination fees, closing costs, or third party fees Low Interest-only paymentsEasy access - simply write a check, transfer online, or visit a branch

LOCK IN A LOW FIXED APR WITH OUR EQUITYLOCK 2OPTION

Now through March 31, 2019, you can lock in a low 4.49% fixed APR for up to 10 years on all new Home Equity Credit Lines with our EquityLock Option:

Fixed monthly paymentsPlan for large purchasesSelect the term from one to ten years

@Andrew Postell yes sounds good. There was one same house that lingered too long and sold for way less then the ones before. I feel that dropped the value and thought about finding others that sold higher where seller was not too desperate to just move. But I see what you mean. Will ask banker how they do it. Thanks.

Getting a Heloc. Would you try to find your own comps to get the highest value for your home? What sources would you use? Zillow zestimate, try to find sold comps in area, ask an agent to run comps, get an offer through offpad or those new sites? Then submit it to the agent or whomever runs the comps on behalf of the bank?

Getting a Heloc, hopefully around 120K. It's a fixed loan product, need to borrow full amount by end of Feb to take advantage of 10y at 4.49%. It being long term and fixed is perfect for what I intend to do with it, just dont want to be pressured to buy just because the money is costing me. I thought to at least put it in a 2 to 2.3% savings account to offset the costs. Dont want to gamble it and I intend to access it at 10k downs for low end properties. Any suggestions where to park it safely but accessible and at a good rate?