All Forum Posts by: Zan Rease

Zan,

There are ways to help remove negative items from your credit profile, have you tried exploiting it?

@Zan Rease so you have a low interest rate first and you don't want to refinance and pay it off. Say you owe $200000 at 3% your payment is $843 then you borrow a $200000 HELOC your payment is $2273+ 843= $3016 total principle and interest not including tax insurance HOA. 50% owed is 3% and 50% is 11% so your rate averaged of the two is 7% which is maybe more than a cash out refinance today which is around 6.875 APR 7.011. If you are only using the HELOC for a couple months, no problem, but long term if rate goes to 22% you lose as averaged/blended is 11-12% so a bad choice. HELOC is a bandaid not a long term plan, IMHO

Rates and examples are not commitment to lend

@Zan Rease A HELOC is second position. 1. borrower had to use title insurance and have/had a first and not changed the deed DIY 2. Are full documentation with past two years IRS taxes net income 3. FICO standard desired is 720 mortgage middle score/ some will go lower with low DTI 4. HELOC is a computer program, borrower fits into the boxes, little to no exceptions. 5. prime + 2 or 3 for owner (prime is 8.5 today) max 22% APR for owner occ is 11.011 APR non owner 13.441 The cost is low to set up. Often an automated digital appraisal ~ so the value isn't going to hit the highest range. HELOC is variable rate like a credit card amortized over 15 years. HELOC can be closed if value declines or credit declines...

This is not a loan commitment just the general rules.

There are also HELOANS and fixed rate seconds. 

Say you have a 3% first mortgage maybe this makes sense as short term loan when you blend the numbers together. 

Fix your FICO. It is holding you back. All things are fixable.

To do a HELOC you need high score, rates are determined by the score as well as property type and program.

Even DSCR @Sean O'Dowd uses the mortgage FICO to determine the interest rate.