Author Topic: HELOC with low fees  (Read 7234 times)

zippyc

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HELOC with low fees
« on: July 23, 2014, 05:31:10 PM »
Does anyone recommend a lending company for a HELOC with low costs? Does anyone do them without an appraisal anymore?

Thanks!

Credaholic

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Re: HELOC with low fees
« Reply #1 on: July 28, 2014, 02:00:22 AM »
Hi Zippy! I'm also in Ballard (I've been stalking your move out of Seattle thread and agree with everyone about you needing a HELOC). Anywho, my husband and I did a HELOC on our old house last year (which we just recently sold) through Bank of America. I typically wouldn't go through the big banks, but my sister in law works there and so I gave them a chance and found that we actually got a great deal through them. The loan costs were low to non-existent. I'd have to look it up again to be verify if we paid anything, but when we bought our new house we ended up using BOA again and they covered all our points - cheapest mortgage I've ever obtained! - and the HELOC was similar. They used an online tool to value our house. We argued that the house was actually worth more, and so they sent someone by for a quick appraisal at no cost to us (we were asking for more money than we could have gotten unless they reevaluated) but it sounds like you have enough equity that you could probably just get by with the online tool and not have to worry about the appraisal. PM me if you'd like contact info for our loan officer!

EarlyQuit

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Re: HELOC with low fees
« Reply #2 on: July 28, 2014, 06:08:19 AM »
I second the post above. I am in FL, but I also got a HELOC from BOA. No fees, no closing costs.

sirdoug007

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Re: HELOC with low fees
« Reply #3 on: July 28, 2014, 06:22:23 AM »
I did one recently with Pentagon Federal Credit Union. Fantastic rates!  You just have to join a veterans nonprofit for $25 (I think) to qualify.  You can do a HELOC with no formal appraisal up to 80% of their computerized value. Very easy process and hard to beat 3.75%!  www.penfed.org


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Dicey

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Re: HELOC with low fees
« Reply #4 on: July 28, 2014, 10:41:20 PM »
I did one recently with Pentagon Federal Credit Union. Fantastic rates!  You just have to join a veterans nonprofit for $25 (I think) to qualify.  You can do a HELOC with no formal appraisal up to 80% of their computerized value. Very easy process and hard to beat 3.75%!  www.penfed.org


PenFed offers some of the best programs in the country. BUT (and it's a big one!) they have very smart people writing up their products and it's easy to think the loan offered is one thing when it really could mean something a little different, particularly with variable rate products. READ THE FINE PRINT. No, they are not unlike other lenders in this, but they are outstandingly good at packaging what they are selling. Make sure you understand the loan completely before you sign on the bottom line. Don't let this scare you off, just be sure you question anything that you don't fully understand until you do.

zippyc

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Re: HELOC with low fees
« Reply #5 on: July 28, 2014, 11:45:14 PM »
Wow! Thanks, guys! The funny thing is the day after I created this post, BOA sent me a flier about a HELOC (they are my bank) and it looked pretty good, but I was suspicious. Glad to hear that the actual experience has been good! Will definitely look into it and Cred I will send you a PM. Thanks!

econberkeley

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Re: HELOC with low fees
« Reply #6 on: July 29, 2014, 11:43:40 AM »
Are these rates fixed?

MooseOutFront

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Re: HELOC with low fees
« Reply #7 on: July 29, 2014, 11:55:07 AM »
I did one recently with Pentagon Federal Credit Union. Fantastic rates!  You just have to join a veterans nonprofit for $25 (I think) to qualify.  You can do a HELOC with no formal appraisal up to 80% of their computerized value. Very easy process and hard to beat 3.75%!  www.penfed.org
I just joined PenFed last week with setting up a HELOC in mind.  What are the repayment terms on these?  Can I make interest only payments during the draw period? How long is the draw period?  Stuff like that.
« Last Edit: July 31, 2014, 03:02:38 PM by MooseOutFront »

sirdoug007

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Re: HELOC with low fees
« Reply #8 on: July 29, 2014, 01:34:40 PM »
The standard HELOC has a 15 year draw period and 15 year payback.  Rates are variable at Prime + 0% right now with a floor of 3.75%.

Your minimum payment is interest only during the draw.  At 15 years, the amount in the balance is amortized over the next 15 years so you start paying off the principle of your outstanding loan amount.

There are no closing costs as long as you keep the line of credit open for some period of time (can't remember how long).

econberkeley

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Re: HELOC with low fees
« Reply #9 on: July 31, 2014, 12:22:03 PM »
Can I open the heloc account and not borrow for few years? Is there an annual fee for keeping the line open?

sirdoug007

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Re: HELOC with low fees
« Reply #10 on: July 31, 2014, 12:30:01 PM »
Can I open the heloc account and not borrow for few years? Is there an annual fee for keeping the line open?

This is what I am doing.  There are no fees at all.  You can just keep it like a credit card with a zero balance for 15 years if you want.

I opened it just as an emergency fund and to lock in the prime rate +0%.  The prime rate will increase as the Fed increases interests rates but at least you are not paying anything beyond the prime rate.


MooseOutFront

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Re: HELOC with low fees
« Reply #11 on: July 31, 2014, 03:10:00 PM »
I did the online application today at penfed.  I also intend to not use this line, but there is a lot of equity in my home.  This will be a good way to have a large emergency fund in a pinch without having to touch taxable investments or carry a credit card balance.  And I'm not gonna lie, I may even use it for dry powder to buy into a market crash if the situation arises.

Of note, Hanscom Federal credit union has a lower rate right now, but they don't offer HELOCs in Texas so I had to go penfed.  Hanscom can be joined with a $13 membership to some acting club.