Author Topic: Who's your HELOC lender?  (Read 2396 times)

Clean Shaven

  • Pencil Stache
  • ****
  • Posts: 821
  • Location: Wild Wild West
Who's your HELOC lender?
« on: May 13, 2015, 11:04:13 AM »
For those of you who have a HELOC set up for an emergency fund --  who's your lender?

I'm looking into opening a HELOC as an emergency fund (and then will hold less in cash), but will only go this route if it doesn't cost me anything.  From searching online, I see a lot of lenders' advertisements stating "no closing costs," etc., but I am curious if I can set up a HELOC that is truly 100% free to me -- so long as I don't draw on it.

Thanks in advance for any info.

charis

  • Handlebar Stache
  • *****
  • Posts: 1920
Re: Who's your HELOC lender?
« Reply #1 on: May 13, 2015, 11:29:13 AM »
We went through our local credit union.  There were no costs (an appraisal was required but they were able to use the one we had gotten for our refi the month prior so I don't remember who pays for that) as long as we kept it open for at least 3 years.

nereo

  • Senior Mustachian
  • ********
  • Posts: 12945
  • Location: Just south of Canada
    • Here's how you can support science today:
Re: Who's your HELOC lender?
« Reply #2 on: May 13, 2015, 11:36:40 AM »
For those of you who have a HELOC set up for an emergency fund --  who's your lender?

I'm looking into opening a HELOC as an emergency fund (and then will hold less in cash), but will only go this route if it doesn't cost me anything.  From searching online, I see a lot of lenders' advertisements stating "no closing costs," etc., but I am curious if I can set up a HELOC that is truly 100% free to me -- so long as I don't draw on it.

Thanks in advance for any info.
I was automatically given a HELOC by my lender, and it's tied to my loan (i.e. the limit on my HELOC increases as I pay down the principle on my loan).  It is 100% free to me as long as I don't draw on it., otherwise it is +0.5% of my loan rate, of 3.1% (so my HELOC is 3.7%)

SenoritaStache

  • 5 O'Clock Shadow
  • *
  • Posts: 85
Re: Who's your HELOC lender?
« Reply #3 on: May 13, 2015, 06:01:04 PM »
I also went with a credit union.  I live in Denver and went with ccu.org or Colorado Credit Union.  I was initially going to do a refinance with some cash out (to purchase another house) but ended up refinincing and doing a HELOC.  Worked out great because I unded up not needing the money I was going to pull out in cash, but I still have my HELOC, for any need.  Good for 10 years.  The good thing was that when the appraiser came for the refi of the primary loan, the same appraisal could be used for the HELOC.  Killed to birds with one stone!!

I guess my only tip I can give you is to shop around, in my experience the credit unions where a much better deal.  Also make sure you get a HELOC without any annual fee.  Good luck!
« Last Edit: May 13, 2015, 06:03:54 PM by SenoritaStache »

Clean Shaven

  • Pencil Stache
  • ****
  • Posts: 821
  • Location: Wild Wild West
Re: Who's your HELOC lender?
« Reply #4 on: May 13, 2015, 08:32:41 PM »
Thanks - I have an account with Navy Federal Credit Union, so will check with them.

I've never opened a home equity loan or line of credit.  Is there any reason I would want a higher amount vs. lower amount available on the line of credit?  I assume a higher amount might have an effect (negative) on opening other credit accounts, but other than that...  ?

aspiringnomad

  • Pencil Stache
  • ****
  • Posts: 929
Re: Who's your HELOC lender?
« Reply #5 on: May 13, 2015, 10:21:47 PM »
Just opened one with PenFed. Donated $15 to a military charity to be eligible, but otherwise zero closing costs as long as I keep the account open for 3 years (fixed the rate for 5 years, otherwise that requirement would be just 2 years).