What HELOC Rate Option Should I go with?

[Lorna Kaaloa]

Hi Everyone,

I just joined BP and read through some other threads on HELOCs...lots of great info but being the newbie that I am, I am so overwhelmed, a little scared but determined to take my first step.

Okay here goes.  

First, instead of using a broker (not sure if I should have done that), I did the legwork myself and narrowed it down to two options, both credit union rates. One offers a 1 yr @ 0.35%, then 2-5 yrs @ 3.50% and their current index rate at 5.00%. No annual fee, receive up to $500 in Closing Credits with an initial draw of $10,000 at closing.

The other CU is offering the below rates.

I also checked with a couple local bank who gave me the same rates at: 1 yr - 1.00%, 2 yrs - 1.75%, 3 yrs - 2.75% with current variable APR at 4.75%

So, of the above options, which should I go with?

Thanks in advance for your help.