HELOC

[rayfinkle]

Hey all! I live in the SF bay area and am looking to get a HELOC. When I've done that in the past I've observed the following:

• It's hard to get data, because online portals spam you
• I would like to get aggressive on LTV... I've found that different lenders are willing to be more aggressive on this sort of thing. E.g., in the past local credit unions have been best since they know the local markets
• Some banks have hard limits on $ of loan. I'm hoping to be on the upper end

 

Thanks all!

[Gamecock-YT]

ok?

[fareastwarriors]

4 hours ago, rayfinkle said:

Hey all! I live in the SF bay area and am looking to get a HELOC. When I've done that in the past I've observed the following:

• It's hard to get data, because online portals spam you
• I would like to get aggressive on LTV... I've found that different lenders are willing to be more aggressive on this sort of thing. E.g., in the past local credit unions have been best since they know the local markets
• Some banks have hard limits on $ of loan. I'm hoping to be on the upper end

 

Thanks all!

 

What's the question? You want to see what others are getting to compare?

[rayfinkle]

3 hours ago, fareastwarriors said:

 

What's the question? You want to see what others are getting to compare?

Oops yeah that’s embarrassing. I pressed publish too soon! Yes, wondering if anyone has any lenders / tips that they’d recommend. 
 

thanks! 

[Ross812]

On 5/16/2022 at 2:52 PM, rayfinkle said:

Hey all! I live in the SF bay area and am looking to get a HELOC. When I've done that in the past I've observed the following:

• It's hard to get data, because online portals spam you
• I would like to get aggressive on LTV... I've found that different lenders are willing to be more aggressive on this sort of thing. E.g., in the past local credit unions have been best since they know the local markets
• Some banks have hard limits on $ of loan. I'm hoping to be on the upper end

 

Thanks all!

Did you check with your mortgage lender? I've used margin loans from IB and Fidelity (they will negotiate rates) for short term borrowing like a car purchase or remodeling and a cash out refi for longer term borrowing (real-estate). HELOCs haven't been attractive to me with dirt cheap mortgage rates. 

[Gregmal]

Yea I second that. I just don’t find a HELOC attractive when you can/could just do a cash out refi into a new 30 year fixed. I proudly smashed the refi button on 4 properties last 18 months. Been laughing to the bank ever since. It’s almost too good to be true. Where else can you borrow 7 figures at 3.5%

[thepupil]

I have a $150k HELOC with third federal. The rate is Prime for first $50k and prime - 1% for the next $100k. I believe they do up to $200k but that’s there limit which may be less than you’re looking for.

 

its undrawn for now, plan would be to use it in a real dislocation. last dollar of LTV is only 70% since values have gone up, but I think they’d do a little higher.

 

may not be aggressive or enough $$$ for you. I think the terms are very fair (prime is 3.9% and prime -1% is 2.9%) but it did take a long time to get. 

[thepupil]

Signature federal credit union is aggressiBe on LTV I went to 97% LTV with them on a 2nd mortgage (but not a revolving HELOC) the rate was 5-6% though (I think 5.25%)

 

Edited May 17, 2022 by thepupil

[fareastwarriors]

I'm in the Cali too but haven't gotten a HELOC recently. Hopefully you lock in some great low rates last year! 

 

Definitely check out your current lender and also check with the Big Banks BAC/C/JP/WFC and Schwab to see what kind of rates they are offering if you bring in assets (relationship discount). 

 

 

[rosemontseneca]

Check with your bank about an unsecured line also.  I recently opened a 3-year unsecured revolving line with a regional bank at Prime + 25 bps.  Was pleasantly surprised how easy the process was.  

[rayfinkle]

17 hours ago, thepupil said:

Signature federal credit union is aggressiBe on LTV I went to 97% LTV with them on a 2nd mortgage (but not a revolving HELOC) the rate was 5-6% though (I think 5.25%)

 

Thanks this is great! 

[rayfinkle]

17 hours ago, Gregmal said:

Yea I second that. I just don’t find a HELOC attractive when you can/could just do a cash out refi into a new 30 year fixed. I proudly smashed the refi button on 4 properties last 18 months. Been laughing to the bank ever since. It’s almost too good to be true. Where else can you borrow 7 figures at 3.5%

Yeah I did this and my first mortgage is great. I just want standby capacity. Even at [5%] floating or whatever I like the ability to lock in borrowing capacity (vs draw right away). 

[fareastwarriors]

Any lenders that do Desktop or Drive-by appraisals for HELOCs or other property-secured loans?

Edited May 18, 2022 by fareastwarriors

[crs223]

4 minutes ago, fareastwarriors said:

Any lenders that do Desktop or Drive-by appraisals for HELOCs or other property-secured loans?

 

I refinanced my house with AimLoan early 2021.  I was given the option of "no appraisal" (and no appraisal fee).  I took the option.  Nobody ever visited the house.

[randomep]

On 5/17/2022 at 3:32 PM, thepupil said:

I have a $150k HELOC with third federal. The rate is Prime for first $50k and prime - 1% for the next $100k. I believe they do up to $200k but that’s there limit which may be less than you’re looking for.

 

its undrawn for now, plan would be to use it in a real dislocation. last dollar of LTV is only 70% since values have gone up, but I think they’d do a little higher.

 

may not be aggressive or enough $$$ for you. I think the terms are very fair (prime is 3.9% and prime -1% is 2.9%) but it did take a long time to get. 

 

Hi what exactly do you mean by prime? I got a rate that about WSJ prime - .35%. Are you talking about WSJ prime?

[thepupil]

yea...it's in WSJ, on JP Morgan's website, on bloomberg..."prime"...it equals 4.0% on all of those...i don't have the docs on hand so can't tell you with precision, but whatever you think "prime" is, it's that. 

[CorpRaider]

Hmmm, those terms seem quite good based on quick research....an Ohio S&L....took a long time to get...I wouldn't mind having a non-callable LOC at prime or prime - for sure.  

Edited May 20, 2022 by CorpRaider

[lnofeisone]

On 5/18/2022 at 12:20 PM, fareastwarriors said:

Any lenders that do Desktop or Drive-by appraisals for HELOCs or other property-secured loans?

Pen Fed and Truist if you are in the US.

[flesh]

Second penfed ..... they are often the best for anything. Also my local cunions Macu and afcu can sometimes beat them. 

[CorpRaider]

Hmm penfed looks like prime +.25% on site for lowest advertised rate.  I will still probably go with them since it seems like they are easier to deal with.

 

EDIT:  Thanks for this discussion everyone (including OP whomst was dunked upon).   

 

I should probably wait until after July when all my 0% CC advances that I plowed into $PSTH reverse (IBKR wouldn't let me margin it), but I am feeling some urgency to get this in place before financial conditions tighten further.  In any event, this is the kind of line I would probably keep in place for the foreseeable future.

 

 

Edited May 21, 2022 by CorpRaider

[fareastwarriors]

2 hours ago, flesh said:

Second penfed ..... they are often the best for anything. Also my local cunions Macu and afcu can sometimes beat them. 

 

2 hours ago, lnofeisone said:

Pen Fed and Truist if you are in the US.

 

 

Thanks both.

 

I have a HELOC with PenFed currently but I had a regular appraisal when I opened the line. 3.75% I/O.  Think it's not bad considering I got this like 3 or 4 years ago.

Edited May 20, 2022 by fareastwarriors

[CorpRaider]

19 hours ago, fareastwarriors said:

 

 

 

Thanks both.

 

I have a HELOC with PenFed currently but I had a regular appraisal when I opened the line. 3.75% I/O.  Think it's not bad considering I got this like 3 or 4 years ago.

You got prime minus a quarter?  Thanks I'ma ask for that.

[rayfinkle]

On 5/20/2022 at 8:45 AM, CorpRaider said:

 

 

EDIT:  Thanks for this discussion everyone (including OP whomst was dunked upon).   

 

 

I deserved it! Thanks everyone! I’ll report back w what I end up doing 

[CorpRaider]

Checking out Penfed: sharing just FYI.  LO said I need to be below 70% LTV to get best rate (prime + .25%).  (I think) He said there's a penalty and rate increases 300 BPS at end of 10 year floating period if you term out your balance.  I might do it if drive by appraisal works and is high enough.  Otherwise might check out 3rd fed.

Edited June 19, 2022 by CorpRaider

[Spekulatius]

Digital CU has a 3.77% APR apparently. max 60% LTV though.

https://www.dcu.org/borrow/mortgage-loans/home-equity-loans.html

 

They are not the greatest to deal with though.

 

Third Federal is another option. I had a HELOC before the financial crisis, which I never drew on before the GFC. They forced me to close it down at some point in 2010.

https://www.thirdfederal.com/borrowing/home-equity

Edited June 7, 2022 by Spekulatius