All Forum Posts by: Christian Requejo

In GA  , What is your timeline and price range ?

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.

@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 .

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

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.