HELOC

I think the days of drive-by appraisals are history.

Every appraisal we've had on our properties have been walk-throughs with measurements.
 
annabanana said:
Do they do a drive by appraisal or full walk through.
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Full appraisal with pictures and everything.  I think they gave me such a high value because my home is farily upgraded and because I have a nice pool with a large backyard.
 
USCTrojanCPA said:
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.
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Hey, Martin, what do you suppose is the main reason she didn't suggest a Cash-Out Refi instead of making it a two-step process? I'm going to guess the rate would have been higher so it's probably good to wait, but just wondering. I've never done either a cash out or a Heloc, so, I wouldn't know. I'm curious what the drawbacks would have been.
 
irvinehomeowner said:
I think the days of drive-by appraisals are history.

Every appraisal we've had on our properties have been walk-throughs with measurements.
Click to expand...

For our HELOC with US Bank, I was surprised they did one of those computer based valuations.
 
zovall said:
irvinehomeowner said:
I think the days of drive-by appraisals are history.

Every appraisal we've had on our properties have been walk-throughs with measurements.
Click to expand...


For our HELOC with US Bank, I was surprised they did one of those computer based valuations.
Click to expand...
Did you believe that the computer based valuation that they did was accurate (i.e. was it close to what you were expecting it to come in at)?
 
SoCal said:
USCTrojanCPA said:
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.
Click to expand...

Hey, Martin, what do you suppose is the main reason she didn't suggest a Cash-Out Refi instead of making it a two-step process? I'm going to guess the rate would have been higher so it's probably good to wait, but just wondering. I've never done either a cash out or a Heloc, so, I wouldn't know. I'm curious what the drawbacks would have been.
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Good question....the rate would have been higher and I want the HELOC not so much to use it but just to have it there as a rainy day fund or if good investment opportunities come around....cash is king after all.  :D
 
zovall said:
For our HELOC with US Bank, I was surprised they did one of those computer based valuations.
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The underwriting for HELOCs is probably more lenient than refis.

Whoever BofA uses is horrible for appraisals... the last one they did for us was 20% below the one we did a year ago... and comps where actually flat from that time frame. I would like to buy Irvine real estate for 20% below what it was last year.
 
USCTrojanCPA said:
zovall said:
irvinehomeowner said:
I think the days of drive-by appraisals are history.

Every appraisal we've had on our properties have been walk-throughs with measurements.
Click to expand...


For our HELOC with US Bank, I was surprised they did one of those computer based valuations.
Click to expand...
Did you believe that the computer based valuation that they did was accurate (i.e. was it close to what you were expecting it to come in at)?
Click to expand...

It was actually higher than I expected so I was pleasantly surprised.
 
I suspect that there is great geographical variation, with SoCal occupying the pinnacle of they HELOC spending pyre
 
SoCal said:
The boldness of this thread is not lost on me. I was reminded of it again this morning reading this on OC Housing News:

"Here Comes the Kool Aid - HELOC Abuse Projected to Rise"

Interesting article. "A common rule of thumb is that for every dollar increase in housing wealth, consumers will purchase an average of 4 cents more." I tend to think it's a hell of a lot more than that.
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Like it or not, we will have another housing bubble sooner or later.  History always repeats itself...next go around I'll be ready to cash out before the crash comes. 
 
Will somebody explain the purpose of HELOC to me? Take a loan on a 5.5% interest and invest it someplace where you can get a higher return? Cash out on the house while you can because this too shall crash soon??
 
Cubic Zirconia said:
Will somebody explain the purpose of HELOC to me? Take a loan on a 5.5% interest and invest it someplace where you can get a higher return? Cash out on the house while you can because this too shall crash soon??
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You can find lower interest rate HELOCs out there....2.75% to 3.75%.  For a lot of people, it's a safety net to have as a fall back if unexpected bills come up.  For others, they can take that capital and invest it (buy a rental property, stock investments, or speculative options trading like what I do).  While others will just want to spend it on things like cars, boats, trips, paying off credit cards, etc.  Cash is king nowadays so it's a "nice to have" thing for me.  I know that I can comfortably make more than a 3.75% annual return on that money without taking huge risk.
 
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