Comparing rates/terms for HELOC on primary before applying

[Stepha L Lockwood]

Hi all! I'm a total newbie here and in the process of researching HELOC terms/rates from different banks for a line on my primary residence. I hope this isn't a dumb question, but when comparing rates and terms for HELOCs from different banks, is it possible to provide my income/current expenses/credit score or SSN to run a credit check and estimated home value to different banks and get a good faith estimate of what the rate would be without having to apply first, since, from what I understand, I can't apply at more than one bank at a time because it would be considered mortgage fraud. And is it better to just get this info in person, if a local bank/union, to start establishing a relationship?

I keep seeing "APR as low as yadda, yadda" but it really doesn't help in my comparison, as I have no idea what rate I would actually qualify for.

Also, I’m in Charleston, SC and a member of the NFCU, and I’m currently comparing NFCU, BB&T and South State Bank, but I’d welcome any other suggestions of banks/credit unions with great rates/terms!

Thanks so much for any advice! I’ve already learned so much from the community, and I’m sure this is the first of many posts as I start my RE investing journey!

[Craig Johnson]

Stephanie,

I just talked to Benjamin Runion at Suntrust over in Mt. Pleasant. They are offering 89.9% LTV, all expenses paid including appraisal, and the option to fix the rate on each loan when you take it. Do not use Lending Tree, they will just sell your info. I was planning on shopping HeratigeTrust as well.

[Lana Lee]

They should be able to tell you what you qualify for based on information you provide without pulling your credit. 

You are talking about low rates, but those are usually promotional deals and not fixed. We recently took out HELOC on our primary residence with 3.99 fixed rate, 3 years draw period and 10 years Amortization. 0 closing costs, not appraisal fee.

[Stepha L Lockwood]

Hi Craig,

Thanks for your response.   I had looked into Suntrust online before, and the terms you describe sound great, but it didn't seem like there was an interest-only option.  Do you know if there is?  I hadn't thought about HeritageTrust but will look into that one as well.  Thanks!

[Stepha L Lockwood]

Lana, what a great deal! Variable rates do worry me, especially with more planned increases this year. It seems like most fixed rate HELOCs with good terms require 1% of the balance as monthly payment. I'm really hoping to find an interest-only HELOC on my primary to keep costs low while I'm rehabbing my first investment property. Is your HELOC interest only, and did you go through a local bank? Thanks!

@Lana Leeundefined

[Lana Lee]

Interest only HELOC is good if you do flipping or BRRRR when you can quickly sell or refinance to avoid HELOC rates spiking.

We got HELOC with American Heritage credit union. I don't know if they do business out of state as well.

[Craig Johnson]

Originally posted by @Stepha L Lockwood:

Hi Craig,

Thanks for your response.   I had looked into Suntrust online before, and the terms you describe sound great, but it didn't seem like there was an interest-only option.  Do you know if there is?  I hadn't thought about HeritageTrust but will look into that one as well.  Thanks!

I do not know if there is an interest only option. I didn't know that that was a normal offering. I will certainly inquire as I am currently shopping around also. Please let me know if you find a good deal. I am planning on using the BRRRR method so that would be perfect.