Who can beat this HELOC?

Question

Great credit score 793 and the local bank (who I thought would give me the best rate) came back at WSJ (7.50) plus 1.65. I work so hard on my credit and I’m surprised I can’t get something near 8%. Any suggestions or recommendations out there for best rate HELOC (not 2nd mortgage).  Thank you!

Andrew Postell · Answer

@Tobi Isaacs this would be better answered by other investors in your market.  You might be some answers here but local people will be better.  If you haven't connected with local people in your market there are several methods here.  For in person connections try some local real estate meetup groups.  Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. For virtual,  facebook will have some good local groups for you.  Some of those facebook groups have thousands of members. Eventbrite too.  But post locally for this.  That’s the best bet.

Mike Grudzien · Answer

Check your local credit union.

Stuart Udis · Answer

As others have noted credit unions are generally competitive on HELOC's.  If the bank prices their debt based on the fed rate you typically see WSJ Prime + 1%. It seems your lender is a bit more expensive coming in at WSJ prime + 1.65%. It is also important to consider the transactional fees associated with originating the HELOC, whether an appraisal is required etc. Rate is only part of the puzzle. You can theoretically have a higher rate from one lender with lower origination fees and total finance charges may come in lower.

Jeffrey Blackman · Answer

@Tobi Isaacs, I'm a licensed mortgage lender. DM me and I'll connect you with the Credit Union I send my clients to. Based on what you've told us, your rate should be at prime (7.5%), unless you are over 80% LTV, then it would be prime +1.

Jeff

Raymond J. Rodrigues · Answer

@Tobi Isaacs  Third Federal Savings and Loan. I shopped across 15 different institutions for my personal HELOC and they seemed to have the best terms out there. I am a lender myself, so I know what to look for. -Primary Residence.

Who can beat this HELOC?

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