What would you do? HELOC Choices

[Brian Legg]

Hi.

I am looking for a what would you do in my situation? I am planning on getting my real estate journey started, but first I need some money! I have equity in my primary residents, so I plan to start with that.

I owe about $124k and it should be worth 165 - 175. Zillow says $175, so i assume that is the high end... or really high end. 

I want to get as much equity as I can. My wife is on board with investing, but we have improvements to our own home we need to do, which we would need to also use the HELOC for.

My choices are:

PNC Bank - 5.37% APR. up to 89%. annual fee $50, but waived since I have a qualifying checking. So all said and done assuming 165k appraisal i can get roughly 22k. setting aside a couple grand for my own home improvements.

Key Bank - has a 90-100% option at a rate of 6.76%. plus an annual fee of $50 (not waived). again assuming 165k @ 100% i could get 40k, but at a much higher rate.

What do you think? I would ideally like our first deal to be Multi family with 20-25% down. With PNC i may not have enough credit is my only worry unless maybe i decided to go FHA if that was an option. Key bank's rate scares me that it is almost at a rate of a credit card and i assume it is variable and also assume rates will go up.

I am not really looking for other financing options other than this for my first deal. any thoughts or suggestions are greatly appreciated.