Trying to find the right HELOC terms...

[Will Pardo]

Hello, 

I've been searching high and low for a HELOC with great terms. They're all pretty much the same and I was about to commit to a local credit union but came across this HELOC.

https://www.unifyfcu.com/home-loans#flex-rate-home...

Here are some of the highlights: 

• Up to 90% CLTV financing.
• $20,000 to $250,000 loan amounts.
• No annual fee.
• 15-year draw period & 15-year repayment period.
• For single-family and multi-units, condominiums, townhomes, second homes and planned unit developments.
• Fixed-rate loan lock option as low as 2.99% APR (Minimum 60-month term required) .
• Apply up to 3 fixed-rate loan locks at any time.
• Fixed-rate is based on credit history at time of loan origination.
• Interest Only.
• No prepaid penalties. 
• HELOC must remain open for 3 years.

I did call them and they clarified that 90% LTV has a 6.5% interest rate (excellent credit) but the same features above would still apply. 80% LTV is the current rate 4.25% and all closing cost would be paid by me. On a loan of 100k the closing cost would be approximately $1900 to $2750.

Now I know I can get no closing cost else where but I thought the three fixed rate locks at 2.99% APR for 5 years could be beneficial considering I'm a newbie and would want to start my RE Investing slow. Has anyone used Unify Financial Credit Union? Any feedback or HELOC recommendations would be REALLY appreciated.

Thanks! 

[John Warren]

@Will Pardo,

It is definitely possible to get a HELOC with low or minimal closing costs that has most of the same terms you just described. I just did one where I paid $50, and got 90%LTV as a second mortgage on my primary. I have interest only for one year, and a teaser rate of 2.9% for the first six months. This is my second time around doing this. Not sure who does these in Florida, but if you can find them in Chicago you can find them in Florida.