1st HELOC - How to Go Shopping?

[Jay Williams]

Hi BP,

I have two main questions:

1.) Can you "shop" for HELOC's in the same way that you would shop for an auto loan?

2.) If you can shop, what questions or tips will get you the best results?

A little more info:

The HELOC would be on a MF primary residence (house hack). I have had a recent appraisal done so I know roughly what the equity will be. However, I fully understand that the financial institution will likely want to have their own appraisal done so I'm not hanging my hat on anything. I also know my credit score (high), but that is also no guarantee that the score I see will match the scoring model they pull.

Here are the questions that I have compiled from other research. What are some other good questions someone should be asking to get the best product?

Interest

What is the intro rate?

What is the intro period?

Is the rate variable or fixed? Is there a fixed option?

What is the margin above prime after the intro period?

Is there a maximum the variable rate can rise during a certain amount of time?

What is the maximum rate?

Does the bank/CU offer rate discounts (autopay, current customer, etc)?

Fees

What are the closing fees?

Inactivity Fees?

Cancellation/Prepayment Fees?

Annual Fees?

Draw Fees?

Other
Minimum Draw?

Required Balance?

What is the payment structure (int. only, 1% princ., etc)?

Is there a balloon payment?

What is the draw period?

What is the max LTV?

Thanks in advance!