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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: jc4 on March 26, 2020, 10:41:26 AM

Title: HELOC Basics Questions - And Looking for Recomendations
Post by: jc4 on March 26, 2020, 10:41:26 AM
I'm looking at getting a HELOC to dump some $ into stocks right now.

1. Any recomendations on the best place to get one? I'd rather not just apply with a bunch of random banks to shop rates.
2. What sort of rate can I expect. I'd like to be under 5%. Very good credit score.
3. What are the fees? Up front? annual?
Title: Re: HELOC Basics Questions - And Looking for Recomendations
Post by: spartana on March 26, 2020, 01:07:39 PM
Just be aware that during the great recession in 2008 that many HELOCs got cancelled or frozen meaning you could no longer make withdrawals from them. I had also read that some lenders were requiring immediate pay back. Whether or not that's true or even legal read the fine print before getting one. If SHTF and stocks slide further then you may not be able to sell enough to pay back the monthly HELOC amount or a full pay-on-demand amount if they could do that.

I had a HELOC thru my credit union. It was a 5 year draw and 20 year pay back. No fees to get or maintain the HELOC if I kept a certain balance in accounts at the CU. Variable rate. I didn't touch it and just kept it for 5 years as an EF after I FIREd.
Title: Re: HELOC Basics Questions - And Looking for Recomendations
Post by: jc4 on March 27, 2020, 08:18:21 AM
@spartana Thanks for the warning and the recomendation.