Author Topic: HELOC Options  (Read 2005 times)

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Offline sleepy5136

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HELOC Options
« on: August 05, 2021, 10:05:38 PM »
Anyone recommend any bank for HELOCs? Big banks aren't doing it now besides BofA.

Offline USCTrojanCPA

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Re: HELOC Options
« Reply #1 on: August 05, 2021, 10:47:38 PM »
Anyone recommend any bank for HELOCs? Big banks aren't doing it now besides BofA.

Bank of the West
PenFed CU
Wescom CU
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Offline sleepy5136

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Re: HELOC Options
« Reply #2 on: August 06, 2021, 12:28:22 AM »
Anyone recommend any bank for HELOCs? Big banks aren't doing it now besides BofA.

Bank of the West
PenFed CU
Wescom CU
Thank you!

Offline Cornflakes

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Re: HELOC Options
« Reply #3 on: August 06, 2021, 04:35:39 PM »
Took out HELOC from Wescom recently. Super easy process and they are by far the most technologically advanced CU I have experienced.

Offline USCTrojanCPA

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Re: HELOC Options
« Reply #4 on: August 11, 2021, 11:55:13 PM »
Took out HELOC from Wescom recently. Super easy process and they are by far the most technologically advanced CU I have experienced.

One of my buyers is a senior level executive there and was telling me about their jumbo loan program that goes up to $5m with 25%.  I was surprised that they'd go up that high with only 25% down when the big banks require a 30-40% at $2.5m+ loan amounts. Their rates are fairly competitive too, I might give them a try when it's time to go unicorn hunting.
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Offline hurijo

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Re: HELOC Options
« Reply #5 on: August 19, 2021, 09:40:31 AM »
I've never done a HELOC before... is the paperwork and income verification at the same level as a refinance? Or is it more 'lax?

Offline Cares

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Re: HELOC Options
« Reply #6 on: August 19, 2021, 09:43:09 AM »
HELOC is slightly more lax. Many banks like BofA require you to keep a HELOC open for 3 years and they will waive all the closing costs.

Just be aware if you get a HELOC, it makes it more difficult to refinance in the future. Lenders will require your HELOC bank to subordinate which costs time and money and it results in you getting a higher interest rate because of the subordination and CLTV.

Offline USCTrojanCPA

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Re: HELOC Options
« Reply #7 on: August 19, 2021, 09:49:44 AM »
HELOC is slightly more lax. Many banks like BofA require you to keep a HELOC open for 3 years and they will waive all the closing costs.

Just be aware if you get a HELOC, it makes it more difficult to refinance in the future. Lenders will require your HELOC bank to subordinate which costs time and money and it results in you getting a higher interest rate because of the subordination and CLTV.

Some lenders like Loan Depot will require you to payoff and close a HELOC before they fund a refi (it slowed down my refi by 6 weeks as that's how long it took to get the lien release from the HELOC lender recorded after I paid it off and told them to close it). 
Martin Mania, CPA
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Offline the.irvine

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Re: HELOC Options
« Reply #8 on: September 26, 2021, 12:25:34 AM »
HELOC is slightly more lax. Many banks like BofA require you to keep a HELOC open for 3 years and they will waive all the closing costs.

Just be aware if you get a HELOC, it makes it more difficult to refinance in the future. Lenders will require your HELOC bank to subordinate which costs time and money and it results in you getting a higher interest rate because of the subordination and CLTV.

What if you have the HELOC but dont use it? Does it take same amount of time and hassle to refi?

Offline Cares

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Re: HELOC Options
« Reply #9 on: September 26, 2021, 10:17:44 AM »
HELOC is slightly more lax. Many banks like BofA require you to keep a HELOC open for 3 years and they will waive all the closing costs.

Just be aware if you get a HELOC, it makes it more difficult to refinance in the future. Lenders will require your HELOC bank to subordinate which costs time and money and it results in you getting a higher interest rate because of the subordination and CLTV.

What if you have the HELOC but dont use it? Does it take same amount of time and hassle to refi?

Yes you still have to either subordinate or close the HELOC.

Offline ndmaynard

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Re: HELOC Options
« Reply #10 on: December 03, 2021, 01:10:24 PM »
Hi - I am planning to apply for a HELOC to help fund a landscaping project.  I have a single mortgage on the home that we purchased this year and current LTV is around 78% (we put down 20% at closing). 

Does the HELOC impact the First Mortgage at all, and would the first mortgage holder have issues/concerns if we are getting a HELOC that would effectively increase the total LTV to be above 80% LTV that we had at initial closing?  I am trying to determine if the HELOC would be completely independent from the first mortgage or if we would need to work with both a new lender and the existing lender to get approvals. 

Thanks in advance for any guidance.

Offline Liar Loan

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Re: HELOC Options
« Reply #11 on: December 03, 2021, 01:55:23 PM »
Hi - I am planning to apply for a HELOC to help fund a landscaping project.  I have a single mortgage on the home that we purchased this year and current LTV is around 78% (we put down 20% at closing). 

Does the HELOC impact the First Mortgage at all, and would the first mortgage holder have issues/concerns if we are getting a HELOC that would effectively increase the total LTV to be above 80% LTV that we had at initial closing?  I am trying to determine if the HELOC would be completely independent from the first mortgage or if we would need to work with both a new lender and the existing lender to get approvals. 

Thanks in advance for any guidance.

The existing lender will not care and won't even be aware of the HELOC.  It's only if you go to refi the first loan that the HELOC may create some hassles.

Offline USCTrojanCPA

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Re: HELOC Options
« Reply #12 on: December 03, 2021, 02:24:55 PM »
Hi - I am planning to apply for a HELOC to help fund a landscaping project.  I have a single mortgage on the home that we purchased this year and current LTV is around 78% (we put down 20% at closing). 

Does the HELOC impact the First Mortgage at all, and would the first mortgage holder have issues/concerns if we are getting a HELOC that would effectively increase the total LTV to be above 80% LTV that we had at initial closing?  I am trying to determine if the HELOC would be completely independent from the first mortgage or if we would need to work with both a new lender and the existing lender to get approvals. 

Thanks in advance for any guidance.

As LL mentioned, opening a HELOC will not effect the first mortgage lender because they are in a first position.  Keep in mind that most lender will only provide you a HELOC that has a maximum of 80% total loan to value but PenFed CU does HELOCs up to 85% and 90% total loan to value (at higher rates).
Martin Mania, CPA
AgencyOne
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CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!
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Offline zovall

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Re: HELOC Options
« Reply #13 on: January 10, 2022, 12:27:40 PM »
Any recent experiences opening HELOC’s?
Any recommendations other than what Martin posted earlier in this thread? What LTV do they go up to?

 

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