I had replied to your other posting about using a heloc to replace your mortgage--- the big warning was the hit to your credit score if you max it out. In regards to this posting---
1) My heloc on primary house is .25% below prime with a floor of 4%, so its been sitting at 4% for a while now. I've seen them advertised currently at my local credit union for 2.75% with caveats, but we're expecting to sell our house in the spring, so I haven't bothered trying to juggle the finances around for a lower rate. We have another heloc on a rental house at 5% or so, but haven't actually used it yet. Fees were covered by the bank for both.
2) There are two periods to the heloc--- the draw (variable rate, just paying interest on what you've taken out) and the repayment (fixed at whatever the current rate is at, term of 5/10/20 years according to your contract). Some banks will require you to keep the draw period open for a year or two before you fix it for repayment, although I suppose you could always just pay everything off and just keep the account open with zero balance for that time period if you wanted. In your example, if you wanted to fix it for repayment after two years, you'd be at 6.15%.
3) I think they took about a month to close. It might have been faster, and in your case, it seems it could be pretty fast if you can pass everything onto the other banker immediately after the refinance.
Something to add--- you'll get a better rate if your loan to value is below a certain percentage, so there might be a .25% difference between 70% and 80% LTV or 80% to 90% LTV. I don't remember the numbers exactly, but be sure to ask. Same with fees--- if the bank can simply order a drive by appraisal rather than full appraisal, which might depend on the LTV, they might be willing to cover more fees.
Something else--- here's the advertisement from my credit union---https://www.freedomfirst.com/home-equity-loans
