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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Icecreamarsenal on June 11, 2014, 08:46:47 PM

Title: Where to find the best HELOC?
Post by: Icecreamarsenal on June 11, 2014, 08:46:47 PM

I've used the search function, but the first 10 results didn't really answer my question.
Where should I be looking for a HELOC?  Am I locked in to using a HELOC from the bank that supplied my mortgage?
What specific terms should I be looking for?
How soon can I use the HELOC?
Can I use it for anything?  As in putting a downpayment on another house?
If I purchase another house with that HELOC, can I take out another HELOC on that second house?
What are the fees associated with a HELOC?

Title: Re: Where to find the best HELOC?
Post by: fixer-upper on June 11, 2014, 09:17:36 PM

It can take a couple months to set one up and get it funded.  Yes, you can use one to buy another house.  You wouldn't need to use the same lender as your first mortgage.  Shop around to minimize fees and get good terms.  Some banks will pay all the fees to get you started, and $50/yr is normal for maintaining the account.

Title: Re: Where to find the best HELOC?
Post by: enigmaT120 on June 12, 2014, 11:27:13 AM

My credit union doesn't charge me anything to "maintain the account."  I don't remember paying any fees.  My interest rate is 4.00%.

I hate banks.  My credit union makes money for it's shareholders, too.  But I'm one of them.