Home equity line rates?

[DawnM]

Frustrated. Several places don't even list their rates and I really don't want to sit here making 20 phone calls.

I started with the company our mortgage is through. I was on hold for almost a full 5 min before being told they don't do HELC.

There are some banks we can't use because of DH's work, but I still need a list and a ballpark for what is a good rate on these things.

Dawn

 

[CalDisneyMomof2]

We were going to do a Home Equity Loan recently (decided not to after all) and rate is 5.75%. For a HELOC the rate was 4.5%. That was through our credit union. Do you belong to one? We don't have stellar credit (I've got the best beween my husband and I and it's in the high 600's) and we were going to be approved for that rate as long as one of us was over 640 I believe.

Oh and that HELOC had an introductory rate of 2.95%. Hope that helps a little

 

[DawnM]

I was hoping for under 4%.

We are not part of a credit union, but could join if we needed to.

We were going to do a Home Equity Loan recently (decided not to after all) and rate is 5.75%. For a HELOC the rate was 4.5%. That was through our credit union. Do you belong to one? We don't have stellar credit (I've got the best beween my husband and I and it's in the high 600's) and we were going to be approved for that rate as long as one of us was over 640 I believe.

Oh and that HELOC had an introductory rate of 2.95%. Hope that helps a little

 

[nikkistevej]

Try SECU- I know the Maryland one is offering really good rates right now, ours at the bank I work for is 1.99%, that's at M&T bank, but got it several years ago, so don't think they are offering that now.

 

[shelly3girls]

Banks in our area are around 4% with good credit. Most banks will offer a promotional rate if you have an account or do automatic payment through a checking account.

 

[Gr8t Fan]

Try PenFed. Our rate with them was 1.99% for 60 months. We were going to pull from our EF, but decided to use them because their rate was so low.

 

[DawnM]

I think we are going to apply with Fifth Third. The rate is 3.75% on a 20 year.

 

[DawnM]

I see 3.75% on their HELOC. Where are you seeing 1.9% for 60 months?
I do see if you borrow a fixed amount for 60 months it is 2.99%.


Dawn

Try PenFed. Our rate with them was 1.99% for 60 months. We were going to pull from our EF, but decided to use them because their rate was so low.

 

[barkley]

shop around a bit-home equity loans around here are offering better rates than home equity lines of credit. right now rates at credit unions for an hel is 2.74 fixed for up to a 20 year term (verses an helc at 3.75 with a variable rate for a max of 15 years).

 

[Gr8t Fan]

I see 3.75% on their HELOC. Where are you seeing 1.9% for 60 months?
I do see if you borrow a fixed amount for 60 months it is 2.99%.


Dawn

Rates must have gone up. We took our loan about 8 months ago and got 1.99%.

 

[DawnM]

On a home equity line or on a fixed rate home equity loan?

Rates must have gone up. We took our loan about 8 months ago and got 1.99%.

 

[Gr8t Fan]

On a home equity line or on a fixed rate home equity loan?

Fixed rate home equity loan.

 

[sweetdana]

Fixed rate home equity loan.

Fixed rates can be second mortgages ... They can also have the draw at closing fixed. They can have a fixed rate tied to prime. You how ever cannot have a fixed rate line. Without the draw locked.

Banks would not and could not agree to lend you money at 1.99% later... Say 5 years, as they can guess, but don't know what rates will be. Most sell mortgage backed securities to hold the money (internally), and they would not find someone to do this if rates in 5 years were at 9%, only charging you 2. Please check your fine print , if you think your indrawn line is locked.. This would not be correct.

Also a side note a lot if people ignore, is most states have no rules on limits... Or very high like 21%, 25%, 32%... (Not loans but lines), so if you have a short term goal of a pay back, they are fantastic.. Doing mortgages for 12 years, many people do not they think it is an option for school/credit card/ dvc purchases with a 10 year or worse pay back... When prime rates starts to go up, (and it will eventually) it will ride at 1/2 -1/4% a month and continue on a path that could be a 10% increase in 2-3 years.

Helocs should be done very very cautiously!

Note a closed end fixed loan is not the same as a line of credit. (Loans are fixed/ lines are not unless portions licked generally at closing)

 

[DawnM]

We are putting our house on the market in the Spring. The bank's assessment (80/20 LTV) says we can take out a max of $110,000. We don't need anywhere even near half of that.

We will most likely have this loan for less than a year if all goes as planned.

Dawn

 

[StitchandPooh'sMom]

The BB&T website is advertising an intro rate of 1.99% for 12 months when you take $20,000 at closing. Afterwards, it is Prime + 0%.

http://www.bbt.com/bbtdotcom/lending/home-equity/home-equity-line.page

 

[kathie859]

Fixed rates can be second mortgages ... They can also have the draw at closing fixed. They can have a fixed rate tied to prime. You how ever cannot have a fixed rate line. Without the draw locked.

Banks would not and could not agree to lend you money at 1.99% later... Say 5 years, as they can guess, but don't know what rates will be. Most sell mortgage backed securities to hold the money (internally), and they would not find someone to do this if rates in 5 years were at 9%, only charging you 2. Please check your fine print , if you think your indrawn line is locked.. This would not be correct.

Also a side note a lot if people ignore, is most states have no rules on limits... Or very high like 21%, 25%, 32%... (Not loans but lines), so if you have a short term goal of a pay back, they are fantastic.. Doing mortgages for 12 years, many people do not they think it is an option for school/credit card/ dvc purchases with a 10 year or worse pay back... When prime rates starts to go up, (and it will eventually) it will ride at 1/2 -1/4% a month and continue on a path that could be a 10% increase in 2-3 years.

Helocs should be done very very cautiously!

Note a closed end fixed loan is not the same as a line of credit. (Loans are fixed/ lines are not unless portions licked generally at closing)

FIfth Third Bank has/had a HELOC that supports locking a portion of the credit line in a fixed rate. It actually allows for 3 separate rate locks simultaneously.
I.e.: $50k HELOC
Draw $5k.....either leave at HELOC rate that can adjust or lock @ prevailing rate/term
Draw another amount, can do the same....and again.

Certainly other banks have a similar product?

 

[DawnM]

Thanks. I will have to run some numbers.

It may still be better to take out as needed in terms of paying interest if we don't use that much at the start.

I am actually hoping to cash flow as much as I possibly can and then use the HEL sparingly vs. paying 1.99% on $20K for the first year.


Dawn

The BB&T website is advertising an intro rate of 1.99% for 12 months when you take $20,000 at closing. Afterwards, it is Prime + 0%.

http://www.bbt.com/bbtdotcom/lending/home-equity/home-equity-line.page