All Forum Posts by: Christian Requejo
Christian Requejo has started 20 posts and replied 95 times.
Post: Calling All Agents!!!!!!!!! Looking To Buy Land In Mountains, Ga, Tn, Va & Nc.
- New to Real Estate
- Florida
- Posts 95
- Votes 18
Quote from @Sandy Miller:
Quote from @Christian Requejo:
Hello everyone,
I live in Florida and looking to buy a piece of land in the mountains. The plan is to buy the land and when I pay off the loan, build a cabin. I want to stay relatively close to Florida. I plan to drive to the property after the cabin is built, therefore I don't want to drive more than 15 hours. I want to work with an experienced realtor who specializes in selling vacant land. I have mentioned the states I am currently interested in which are, GA, TN, VA & NC. You can reply to me on here with your information or send me a DM.
Thank you. I look forward to working with you.
In GA , What is your timeline and price range ?
First let me ask you. What's your expierence as a realtor? How long have you been a realtor? How many properties in the mountains have you sold?
Post: Calling All Agents!!!!!!!!! Looking To Buy Land In Mountains, Ga, Tn, Va & Nc.
- New to Real Estate
- Florida
- Posts 95
- Votes 18
Hello everyone,
I live in Florida and looking to buy a piece of land in the mountains. The plan is to buy the land and when I pay off the loan, build a cabin. I want to stay relatively close to Florida. I plan to drive to the property after the cabin is built, therefore I don't want to drive more than 15 hours. I want to work with an experienced realtor who specializes in selling vacant land. I have mentioned the states I am currently interested in which are, GA, TN, VA & NC. You can reply to me on here with your information or send me a DM.
Thank you. I look forward to working with you.
Post: Pros and Cons between HELOC and Bank Construction loan for New home construction
- New to Real Estate
- Florida
- Posts 95
- Votes 18
Quote from @Edward Zachary Samperio:
Quote from @Christian Requejo:
Quote from @Edward Zachary Samperio:
Quote from @Christian Requejo:
Quote from @Edward Zachary Samperio:
Quote from @Christian Requejo:
Quote from @Edward Zachary Samperio:
Building a new home can be an exciting project, and it's important to carefully consider your options for financing. Here are some pros and cons to using a Home Equity Line of Credit (HELOC) or Bank Construction Loan:
HELOC:
Pros:
- Generally offers lower interest rates than a traditional construction loan
- Can be used for a variety of purposes beyond home construction
- Interest may be tax-deductible
Cons:
- Payment terms can be variable and may increase over time
- Lender may require a minimum draw or balance, which could tie up funds you may need for other expenses
- Generally requires a high credit score and significant home equity to qualify
Bank Construction Loan:
Pros:
- Funds are typically disbursed in installments based on project milestones, which can help keep costs under control
- Interest rates may be fixed, which can help with budgeting and planning
- Lender may offer a longer repayment period than a HELOC
Cons:
- Interest rates on construction loans are generally higher than those on HELOCs
- Lender may require a higher down payment and significant financial documentation
- The loan may require a personal guarantee or collateral, such as a lien on the property
Ultimately, the best option for you will depend on your individual financial situation and goals. It may be helpful to speak with a financial advisor or mortgage professional to explore your options and determine which financing option would be most cost-effective for you.
This is all great information. What is considered a good rate on a HELOC?
The interest rate on a Home Equity Line of Credit (HELOC) can vary depending on several factors such as credit score, loan amount, loan-to-value ratio, and the lender's requirements. However, generally, a good interest rate for a HELOC is one that is lower than the prime rate, which is the benchmark interest rate used by banks to determine interest rates on loans. As of March 2023, the prime rate is 3.25%.
HELOC interest rates can range from below the prime rate to several percentage points above it. A good rate for a HELOC would typically be one that is close to the prime rate or lower. Some lenders may offer introductory or promotional rates that are lower than the prime rate, but these rates may only last for a limited time and may then adjust higher based on market conditions.
It's essential to shop around and compare offers from different lenders to find the best rate and terms for your HELOC. Additionally, maintaining a good credit score, low debt-to-income ratio, and a strong payment history can help you qualify for a lower interest rate on a HELOC
That's interesting. I was not aware that I could get lower interest rates than Prime with HELOC. Most online quotes were giving me a 6.75% was the lowest I saw. Of course, I did not fill out any information. This was google searches and looking at some larger bank's website. For example, using Bank of America calculator on their website had an introductory rate of 6.75% with an initial withdrawal, then it went up to like 9%. I am not sure how accurate this is, but it seemed very high.
Let's say I am a perfect candidate for the lender. I have all the requirements they want. A lot of equity in my home. Top credit score. Low debt to income ratio. Is it possible to get a HELOC, with a fixed low interest rate? As low as Prime?
It's possible to find a HELOC with a fixed interest rate, but it's not common. HELOCs are typically offered with variable interest rates, which means the interest rate can fluctuate over time based on market conditions. Some lenders may offer a hybrid HELOC, which starts with a fixed rate for a certain period before converting to a variable rate.
As for interest rates, it's possible to get a HELOC with an interest rate that is close to the prime rate or even lower, especially if you have a strong financial profile. However, it's important to keep in mind that interest rates can change over time and may be affected by market conditions, so it's important to understand how the interest rate is calculated and when it may change.
It's always a good idea to shop around and compare offers from multiple lenders to find the best rate and terms for your HELOC. Additionally, working with a mortgage broker or financial advisor can help you navigate the process and find the best financing option for your needs.
I am definitely going to shop around. From my research, it seems like the bigger banks really don't have much to offer.
Post: Pros and Cons between HELOC and Bank Construction loan for New home construction
- New to Real Estate
- Florida
- Posts 95
- Votes 18
Post: Pros and Cons between HELOC and Bank Construction loan for New home construction
- New to Real Estate
- Florida
- Posts 95
- Votes 18
Quote from @Dave Skow:
@Christian Requejo- easy answer - use a HELOC ....the cost to get one is zero as opposted to thousands for a const loan ....also much less red tape involved ....work with a general contractor and have a contract and detailed draw scehdules in place to follow .
Dave great advice. Any tips and advice when dealing with a contractor?
Post: Pros and Cons between HELOC and Bank Construction loan for New home construction
- New to Real Estate
- Florida
- Posts 95
- Votes 18
Post: Pros and Cons between HELOC and Bank Construction loan for New home construction
- New to Real Estate
- Florida
- Posts 95
- Votes 18
Quote from @Edward Zachary Samperio:
Quote from @Christian Requejo:
Quote from @Edward Zachary Samperio:
Quote from @Christian Requejo:
Quote from @Edward Zachary Samperio:
Building a new home can be an exciting project, and it's important to carefully consider your options for financing. Here are some pros and cons to using a Home Equity Line of Credit (HELOC) or Bank Construction Loan:
HELOC:
Pros:
- Generally offers lower interest rates than a traditional construction loan
- Can be used for a variety of purposes beyond home construction
- Interest may be tax-deductible
Cons:
- Payment terms can be variable and may increase over time
- Lender may require a minimum draw or balance, which could tie up funds you may need for other expenses
- Generally requires a high credit score and significant home equity to qualify
Bank Construction Loan:
Pros:
- Funds are typically disbursed in installments based on project milestones, which can help keep costs under control
- Interest rates may be fixed, which can help with budgeting and planning
- Lender may offer a longer repayment period than a HELOC
Cons:
- Interest rates on construction loans are generally higher than those on HELOCs
- Lender may require a higher down payment and significant financial documentation
- The loan may require a personal guarantee or collateral, such as a lien on the property
Ultimately, the best option for you will depend on your individual financial situation and goals. It may be helpful to speak with a financial advisor or mortgage professional to explore your options and determine which financing option would be most cost-effective for you.
This is all great information. What is considered a good rate on a HELOC?
The interest rate on a Home Equity Line of Credit (HELOC) can vary depending on several factors such as credit score, loan amount, loan-to-value ratio, and the lender's requirements. However, generally, a good interest rate for a HELOC is one that is lower than the prime rate, which is the benchmark interest rate used by banks to determine interest rates on loans. As of March 2023, the prime rate is 3.25%.
HELOC interest rates can range from below the prime rate to several percentage points above it. A good rate for a HELOC would typically be one that is close to the prime rate or lower. Some lenders may offer introductory or promotional rates that are lower than the prime rate, but these rates may only last for a limited time and may then adjust higher based on market conditions.
It's essential to shop around and compare offers from different lenders to find the best rate and terms for your HELOC. Additionally, maintaining a good credit score, low debt-to-income ratio, and a strong payment history can help you qualify for a lower interest rate on a HELOC
That's interesting. I was not aware that I could get lower interest rates than Prime with HELOC. Most online quotes were giving me a 6.75% was the lowest I saw. Of course, I did not fill out any information. This was google searches and looking at some larger bank's website. For example, using Bank of America calculator on their website had an introductory rate of 6.75% with an initial withdrawal, then it went up to like 9%. I am not sure how accurate this is, but it seemed very high.
Let's say I am a perfect candidate for the lender. I have all the requirements they want. A lot of equity in my home. Top credit score. Low debt to income ratio. Is it possible to get a HELOC, with a fixed low interest rate? As low as Prime?
Post: Pros and Cons between HELOC and Bank Construction loan for New home construction
- New to Real Estate
- Florida
- Posts 95
- Votes 18
Quote from @Edward Zachary Samperio:
Quote from @Christian Requejo:
Quote from @Edward Zachary Samperio:
Building a new home can be an exciting project, and it's important to carefully consider your options for financing. Here are some pros and cons to using a Home Equity Line of Credit (HELOC) or Bank Construction Loan:
HELOC:
Pros:
- Generally offers lower interest rates than a traditional construction loan
- Can be used for a variety of purposes beyond home construction
- Interest may be tax-deductible
Cons:
- Payment terms can be variable and may increase over time
- Lender may require a minimum draw or balance, which could tie up funds you may need for other expenses
- Generally requires a high credit score and significant home equity to qualify
Bank Construction Loan:
Pros:
- Funds are typically disbursed in installments based on project milestones, which can help keep costs under control
- Interest rates may be fixed, which can help with budgeting and planning
- Lender may offer a longer repayment period than a HELOC
Cons:
- Interest rates on construction loans are generally higher than those on HELOCs
- Lender may require a higher down payment and significant financial documentation
- The loan may require a personal guarantee or collateral, such as a lien on the property
Ultimately, the best option for you will depend on your individual financial situation and goals. It may be helpful to speak with a financial advisor or mortgage professional to explore your options and determine which financing option would be most cost-effective for you.
This is all great information. What is considered a good rate on a HELOC?
The interest rate on a Home Equity Line of Credit (HELOC) can vary depending on several factors such as credit score, loan amount, loan-to-value ratio, and the lender's requirements. However, generally, a good interest rate for a HELOC is one that is lower than the prime rate, which is the benchmark interest rate used by banks to determine interest rates on loans. As of March 2023, the prime rate is 3.25%.
HELOC interest rates can range from below the prime rate to several percentage points above it. A good rate for a HELOC would typically be one that is close to the prime rate or lower. Some lenders may offer introductory or promotional rates that are lower than the prime rate, but these rates may only last for a limited time and may then adjust higher based on market conditions.
It's essential to shop around and compare offers from different lenders to find the best rate and terms for your HELOC. Additionally, maintaining a good credit score, low debt-to-income ratio, and a strong payment history can help you qualify for a lower interest rate on a HELOC
That's interesting. I was not aware that I could get lower interest rates than Prime with HELOC. Most online quotes were giving me a 6.75% was the lowest I saw. Of course, I did not fill out any information. This was google searches and looking at some larger bank's website. For example, using Bank of America calculator on their website had an introductory rate of 6.75% with an initial withdrawal, then it went up to like 9%. I am not sure how accurate this is, but it seemed very high.
Post: Pros and Cons between HELOC and Bank Construction loan for New home construction
- New to Real Estate
- Florida
- Posts 95
- Votes 18
Quote from @Edward Zachary Samperio:
Building a new home can be an exciting project, and it's important to carefully consider your options for financing. Here are some pros and cons to using a Home Equity Line of Credit (HELOC) or Bank Construction Loan:
HELOC:
Pros:
- Generally offers lower interest rates than a traditional construction loan
- Can be used for a variety of purposes beyond home construction
- Interest may be tax-deductible
Cons:
- Payment terms can be variable and may increase over time
- Lender may require a minimum draw or balance, which could tie up funds you may need for other expenses
- Generally requires a high credit score and significant home equity to qualify
Bank Construction Loan:
Pros:
- Funds are typically disbursed in installments based on project milestones, which can help keep costs under control
- Interest rates may be fixed, which can help with budgeting and planning
- Lender may offer a longer repayment period than a HELOC
Cons:
- Interest rates on construction loans are generally higher than those on HELOCs
- Lender may require a higher down payment and significant financial documentation
- The loan may require a personal guarantee or collateral, such as a lien on the property
Ultimately, the best option for you will depend on your individual financial situation and goals. It may be helpful to speak with a financial advisor or mortgage professional to explore your options and determine which financing option would be most cost-effective for you.
This is all great information. What is considered a good rate on a HELOC?
Post: Pros and Cons between HELOC and Bank Construction loan for New home construction
- New to Real Estate
- Florida
- Posts 95
- Votes 18
Great information. I was not aware that the GC will charge more. But it makes total sense. If I do a HELOC, my goal is to sell my current home and pay off as much of that loan as possible. Do you mind if I ask you how that part works? When can I take out a mortgage on the HELOC amount? My goal is to sell my current home that has the HELOC, to move into the new home and payoff the HELOC.