annabanana
New member
Who has the best terms/rates for HELOCS?
HELOC
- Thread starter annabanana
- Start date
irvinehomeowner
Well-known member
Oooo... the H-word... like PS, I wondered if banks were still doing those until a buddy of mine got one last year (he actually used it for a loft addition and kitchen upgrades... not a boat or cosmetic surgery). I should ask him what the rate is.
BankRate tells me that 30K HELOCs from BofA and Wells are Prime + 3.5-6.7%, roughly 6.75-8%, which is indicative of the times because during the bubble, HELOCs were Prime minus some small percent. Nationwide shows 4.5% but I don't see any indicator of that a variable based off of Prime.
Today is not SGIP day (Tuesdays are) but maybe he'll chime in here.
BankRate tells me that 30K HELOCs from BofA and Wells are Prime + 3.5-6.7%, roughly 6.75-8%, which is indicative of the times because during the bubble, HELOCs were Prime minus some small percent. Nationwide shows 4.5% but I don't see any indicator of that a variable based off of Prime.
Today is not SGIP day (Tuesdays are) but maybe he'll chime in here.
usctrojancpa
Well-known member
Most lenders will give you a HELOC up to 65-70% LTV (including your 1st mortgage). I think there might be a few that might go as high as 75% LTV. The best rate that I saw was Prime + 1.00% or 4.25%.ps99472 said:
sgip
Well-known member
We used to refer people to US Bank for HELOC's. They're efficient and relatively competitive. Most of the Biggies (Chase/Wells/BofA/USBank/Union Bank) have HELOC's and fixed seconds. Expect a rate in the 7's if you want a fixed.
Some lenders will go higher on their LTV's if they hold the 1st loan.
Try some of the CU's also (USAA, WESCOM, Schools First, etc) as they usually have reasonable second loans.
Remember that the Prime Rate will likely increase in Q4 so look not for a low cost HELOC, but a low margin one.
A bit off topic, but the Douchest Lender Around (Cashcall Mortgage) was offering a 125% LTV second today. $75,000 maximum. Cashcall is owned by the founder of DiTech. They made DT into a powerhouse by starting the 125% second rage in the mid 1990s. They saw values stabilizing and took the first step into this unique and risky lending. It paid off for them that time. This time perhaps not so much.
Soylent Green is People.
Some lenders will go higher on their LTV's if they hold the 1st loan.
Try some of the CU's also (USAA, WESCOM, Schools First, etc) as they usually have reasonable second loans.
Remember that the Prime Rate will likely increase in Q4 so look not for a low cost HELOC, but a low margin one.
A bit off topic, but the Douchest Lender Around (Cashcall Mortgage) was offering a 125% LTV second today. $75,000 maximum. Cashcall is owned by the founder of DiTech. They made DT into a powerhouse by starting the 125% second rage in the mid 1990s. They saw values stabilizing and took the first step into this unique and risky lending. It paid off for them that time. This time perhaps not so much.
Soylent Green is People.
Irvine2Irvine
New member
annabanana said:
The best I found is Hanscom Federal CU.http://www.hfcu.org/current_rates_and_yields.html?tab=1
Prime - 0.5% which currently is 2.75% with ALL closing costs paid. You only have to pay the closing costs if you close the HELOC within 2 yrs of establishing it.
davenlei
New member
Now that this thread has been opened, I am thinking about opening up a HELOC as a severe thunderstorm fund in case my rainy day fund is not enough to handle a really bad (temporary) financial storm. On my old house I had a line open for the same reason and did not give into the Jet Ski/Harley/mega vacation temptation for the 5 years it was open before I sold my house.
So now that the loan/credit landscape has changed since the peak days, how would having a open (unused) HELOC affect my credit report (I have good credit and don't want to trash it)?
So now that the loan/credit landscape has changed since the peak days, how would having a open (unused) HELOC affect my credit report (I have good credit and don't want to trash it)?
usctrojancpa
Well-known member
Applying for it will probably bring your score down 2-3pts but as long as you kept the balance at or near $0 then having will might even slightly boost your credit scores as you'll have a lower % credit utilitization versus total available credit. Make sure you read the fine print of whether lenders will charge you an annual fee if you don't use the line over the year.davenlei said:
davenlei
New member
Irvine2Irvine said:
Has anyone used them or know about them? I called and their rates/terms seem good but when I had specific questions about the margin the person did not know and could not find the info. She said that once I apply (and they run my credit), a loan consultant will contact me with options and I can ask about the margin then. I said that is ass backwards and I should be able to know the terms before I do anything. She said they are just a processing house and do not have detailed info. I need to talk to Hanscomm directly to try to get info. Feels kinda wrong to me.
Are there any other banks out there that seems to have good HELOC products?
Anyone have recent HELOC experiences with Hanscom or Sharonview?
Any other lender recommendations? I'd like to have a no cost, high %LTV HELOC in placeto buy toys for emergency purposes.
Any other lender recommendations? I'd like to have a no cost, high %LTV HELOC in place
usctrojancpa
Well-known member
I believe US Bank will go up to 85% or 90% LTV. There's a few others that will go up to 85% (you can find the names on fatwallet).zovall said:
Here's what I found as I tried to get a high LTV HELOC.
Hanscom - I called them and they said they do up to 100%. I then applied online and after they ran my credit they called me and asked for the regular documentation and when I inquired about the amount/LTV, they said the max is 70% (I think; it could have been 75%). I told them that I called them before applying and then they said that it depends on the state and for CA they can only do 70 or 75%.
Sharonview - I called them and left a voicemail. I received a call back a couple days later and I think they said they offered up to 95%. It seemed like a really small bank and I just didn't have confidence that it would be any different than my experience with Hanscom. Maybe someone else has some recent experience with Sharonview they can share.
Comerica - Offers 80% LTV in CA.
US Bank - Offers 85% LTV in CA. I applied online and had to deal with their 'centralized processing' department which requests documentation and provides updates. After finally being approved, they offered me ~80% (when I specifically asked for 85%). When I asked for a reason, they said that is what they can offer me based on my risk. Frustrating. BUT then the file got handed to a local branch where the manager called me. I let him know that I wanted 85% but was offered only 80% and he looked into it and said they didn't calculate my DTI correctly?? but I was now approved for 85%. Sweet. I went in for the signing and a few days later the 85% HELOC is there.
With US Bank, there is a $90 annual fee (waived the first year) for just having the HELOC. It is waived in future years if you deposit $25k with them or if you draw $25k on the HELOC.
There is also a prepayment penalty of up to $500 if you close the HELOC within 3 years.
The rates they show on their site are only if you open a Checking and Savings account (you could put $25 in each) with them. If you don't do this, the rate with be 1/2 a point higher.
I'd highly recommend talking to someone in person at US Bank. The manager at the Newport Coast location inside Pavilions made a HUGE difference in terms of actually getting something done and communicating what is going on. His name is Joseph Deperine and the phone number to that branch is 949-719-6060.
Anyways, I hope this is useful for anyone looking to get a (relatively) high LTV HELOC.
Hanscom - I called them and they said they do up to 100%. I then applied online and after they ran my credit they called me and asked for the regular documentation and when I inquired about the amount/LTV, they said the max is 70% (I think; it could have been 75%). I told them that I called them before applying and then they said that it depends on the state and for CA they can only do 70 or 75%.
Sharonview - I called them and left a voicemail. I received a call back a couple days later and I think they said they offered up to 95%. It seemed like a really small bank and I just didn't have confidence that it would be any different than my experience with Hanscom. Maybe someone else has some recent experience with Sharonview they can share.
Comerica - Offers 80% LTV in CA.
US Bank - Offers 85% LTV in CA. I applied online and had to deal with their 'centralized processing' department which requests documentation and provides updates. After finally being approved, they offered me ~80% (when I specifically asked for 85%). When I asked for a reason, they said that is what they can offer me based on my risk. Frustrating. BUT then the file got handed to a local branch where the manager called me. I let him know that I wanted 85% but was offered only 80% and he looked into it and said they didn't calculate my DTI correctly?? but I was now approved for 85%. Sweet. I went in for the signing and a few days later the 85% HELOC is there.
With US Bank, there is a $90 annual fee (waived the first year) for just having the HELOC. It is waived in future years if you deposit $25k with them or if you draw $25k on the HELOC.
There is also a prepayment penalty of up to $500 if you close the HELOC within 3 years.
The rates they show on their site are only if you open a Checking and Savings account (you could put $25 in each) with them. If you don't do this, the rate with be 1/2 a point higher.
I'd highly recommend talking to someone in person at US Bank. The manager at the Newport Coast location inside Pavilions made a HUGE difference in terms of actually getting something done and communicating what is going on. His name is Joseph Deperine and the phone number to that branch is 949-719-6060.
Anyways, I hope this is useful for anyone looking to get a (relatively) high LTV HELOC.
usctrojancpa
Well-known member
What was the interest rate for the US Bank 85% LTV Heloc?zovall said:
irvinehomeowner
Well-known member
Is this only on primary residences?
usctrojancpa
Well-known member
PenFed will do HELOCs on rentals but the max LTV is 75%.irvinehomeowner said:
usctrojancpa
Well-known member
I'm in the process of doing a refi with PenFed for a 5/5 ARM with an interest of 2.75% at no cost (plus they pick up the majority of the closing costs). My appraisal came in at $715k which was a very pleasant surprised as the highest closed comp of my floor plan was $700k. I asked the loan processor if I could use the appraisal from the refi to apply for a HELOC from PenFed and she said YES (good for 6 months). She said to wait until my refi is closed before I apply for the HELOC. PenFed only charges for the appraisal fee for HELOCs so I won't have to pay for that since I already have an appraisal from them. Their HELOC rates are Prime + 0% with a floor rate of 3.75% for a HELOC up to 80%. I'm not gonna chance a lower appraisal with another lender and will apply for their HELOC once I close my refi.