Local Bank HELOC at 3.99% 10y. Better offers?

[Rijm D.]

I am interested to move forward with a HELOC offer from my local Bank here. They offer at 5.25% interest rate, up to 80% to 90% financed for 10 years, 120 months. During their introductory time to the end of October 2018 they offer to be able to borrow 3 times at a special rate of only 3.99% with their EQUITYLOCK product. No closing, origination or 3rd party fees.

So I see it as follows. Most other banks I contacted, they offer Prime plus, which is at least 5% plus some 0.5% or more, which is similar to what they offer at 5.25%, but with their special offer at 3.99%, it seems very low. Downside seems the 3 times borrowing only during the introductory time till October.

If you would want to borrow $5000 to redo your flooring and lock that in at the 3.99%, it is rather a waste and does not take advantage of the deal. I intend to borrow some $40,000 for multiple cash investments. That makes this very attractive as I can do that 3 times by October for a total of $120.000 each, which should total my possible equity borrowed. It is also a closed end repayment structure, therefore it does not go up with the interest rates. So it is like financing a $40.000 each for me for 10 years at 3.99%, seems like a solid deal for an investment property “mortgage”, which usually would run a lot higher besides that no bank finances a deal that low anyways.

Does that offer sound good to you and are there any known better deals out there?

Any info or input would be welcome.

Thanks.