Choosing a HELOC

[Zak Dolak]

Hey guys,

Question, I want to get a HELOC. I've checked into my Credit Union and Primary bank. The CU offered me $200k, interest only or principle and interest payments. First year a rate of 5.24% and after that it's 1/2 point below prime for the life of the loan. $550 for an appraisal of my primary residence, no other fees.

My primary bank offered me $300k, principle and interest payments only, .09% above prime the life of the loan and an $82 dollar fee. 

Which would you guys choose? Some background, I am a new investor looking for my first property. I'm roughly 40 minutes south of Allentown, PA. My primary residence is paid off which is why I want to get a HELOC.

My plan is to buy a few LTR’s to start out. 

Thanks!

Zak D. 

[Jonathan Bock]

@Zak Dolak

How important is access to the additional 100k to you?  

Would you be open to a loan versus a line of credit?  

What is the amortization on the primary bank P&I ?

I could keep asking questions for a while ha