All Forum Posts by: Elizabeth Rose

@Justin Phillips thanks for the clarification! I'll crunch the #s and see if it makes sense for me. My strategy has been not to worry about paying off my mortgage, but to focus instead on building cash flow and net worth... so this is something different to think about.

@Justin Phillips I just Googled Life Changer Loan and it looks interesting... I can't help think there's gotta be some kind of catch? Are people seriously paying off their homes crazy fast like the website talks about?

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Thanks @Syeed Shah! I'll check them out... do you have a HELOC with them? If so, just wondering how they've been to deal with.

Ceaneh Alexis these are my top contenders:

State Dept Federal Credit Union (SDFCU) - 95% LTV and starting interest rate of 4.25%
Unify Financial Credit Union - 90% LTV and 4.75%
PenFed Credit Union - 90% LTV and 4.75%
Cornexus - 80-90% LTV and 3.49% for 6 months (4.08% thereafter)

I checked with many other lenders including the big banks and these were still the best from what I can tell so far. If anyone has any other HELOC lender suggestions, please share!

@Nick Shri I did not open multiple HELOCs... I contacted 7-10 lenders to ask about their max LTV and interest rates, then I selected my top 3 and applied to those.

They all told me the interest rates they were quoting were starting rates only. Based on what the lenders told me and my own research here in the BP forum, my understanding is that you need to apply and get your credit checked in order for them to give you firm numbers on what they'll offer you... then you make a decision as to which lender you want to go with. I also understand that multiple credit checks within a short time frame won’t damage your credit score, as they will be aggregated as one. 

@Rodney Menendez thanks for the feedback! I've got an application pending with PenFed, along with a few other lenders... I'm shopping around before I sign on the dotted line. PenFed is offering 90% LTV, so one of the highest I've found so far.

@Caroline Gerardo @Nick Shri thoughts on this?

Thanks, Nick! This is good to know, and I feel much better just being transparent.

Hi BP community! I'm in the process of applying for a HELOC on my primary residence, which is a condo. My plan is to use the money to purchase a multifamily property, move into one of the units and rent the other unit(s) out. My current primary residence will also become a rental.

I've called several lenders and am weighing out my options... they all ask: "What do you plan to use the money for?" What's the best response to that?

I'm concerned that if I share it's to buy more property, they may see that as a risky endeavor and charge me more for the loan or lower the LTV they'll offer. I can't say it's to pay off debt (I don't have any)... so I was thinking of saying it's for home improvement, but maybe they'll question why I'm asking for a $150k HELOC for home improvement on a condo?

Thanks in advance for your insights & expertise!