HELOC Rates - good deal or find another option?

[Ashley Anderson]

I am looking to pull equity out of my primary for my first deal (which will be out of state LTR back in my hometown in IL) and my Loan Officer brought back these numbers. I know that interest rates are high, however looking for opinions on these numbers. Thoughts on if this is a good deal and if not, what should I be looking for? Credit score is about 760. 25 year term with a 5 year draw period.

Option 1 using max line of credit:

At the max loan to value of 89.99% the interest rate increases to 11.5% This is prime of 8.5% + 3%.

• Line of credit amount: $140,000
• Estimated interest only payment: $1,245.83
• Estimated full qualifying payment: $1,489.04

Option 2

Dropping the loan to value to 80% to decrease the rate to 10.5%. This is prime rate of 8.5% +2%.

• Line of credit amount: $100,000
• Estimated interest only payment: $875
• Estimated full qualifying payment: $1,067.26

Thoughts?