What do u think of these terms for a HELOC

[Nicholas Weckstein]

Hello all, I’ve been shopping around for a cash out refinance loan. One local bank I spoke with told me they would do a HELOC on an investment property. The terms are as follows 80% LTV 5.29 % fixed rate 15 years 50% DTI No fees and no seasoning period. It’s not exactly what I was looking for but I found It worth looking at. I’m using It for the BRRRR method I was initially looking for a 30 year cash out refinance. I also expected the interest rate to be a bit lower than that. In the 4.5% range. I’m still shopping around but wanted to see what the community thinks as this would be my first Refinance. What else Can I expect ? Thanks

[James Barnhart]

I don't know about New York, but I have a 5% APR HELOC from a local credit union. It is also a 80% LTV ratio.

[Nicholas Weckstein]

James Barnhart it’s in PA actually. I don’t know why I was under the impression you couldn’t HELOC on an investment property but I guess I was wrong. Any cons to a HELOC in comparison to a cash out refi ?

[Daria B.]

Originally posted by @Nicholas Weckstein:

Hello all,

I've been shopping around for a cash out refinance loan. One local bank I spoke with told me they would do a HELOC on an investment property.

The terms are as follows

80% LTV

5.29 % fixed rate

15 years

50% DTI

No fees and no seasoning period.

It’s not exactly what I was looking for but I found It worth looking at.

I'm using It for the BRRRR method

I was initially looking for a 30 year cash out refinance. I also expected the interest rate to be a bit lower than that. In the 4.5% range. I’m still shopping around but wanted to see what the community thinks as this would be my first Refinance. What else Can I expect ?

Thanks

That seems like a good deal considering it’s fixed rather than variable. Mine is a variable. 

[Dustin Frank]

Go to BBVA Compass....in Colorado nobody can compete with them.

[James W.]

Consumer HELOCS can be had for prime in a residence but I would expect a bit of a premium for a non owner occupied property. That rate seams reasonable but may not be the best option for you long term if you are looking to hold.

You could possibly get a conventional 30yr fixed for close to that rate if you have good credit and look around.

It really depends on your long term plans too though. If you only plan on having it short term, you would probably be better off just going with the no fee HELOC.