All Forum Posts by: Jonny Morris

Pen Fed vs US Bank HELOC

Shopping for HELOC's I feel I have narrowed my focus from many, to a couple of options.

With so many variables, I would love some feedback from people who have a HELOC.

Pen Fed currently offer a HELOC at: 4.5%

There is also an interesting 5 year offer with a rate of 3.75%, 15 year term (2% due of balance each month).

US Bank offer a higher rate approx. 5.80% (as of today), no fees if you are a platinum member (must have at least 25k balance to qualify)

They also offered a 5 year fixed rate of 5.19%.

I would be using this HELOC to BRRRR property. So my question is basically, which is better for me? I don't like the idea of paying back 2% of the loan per month since the goal is to rehab with a higher ARV and obtain a conventional loan, paying back the HELOC in full.

Any BRRRR pro's talk me through the best use of a HELOC? Should I just elect to pay interest and then when higher ARV of property appraised and loan issued, pay back in full?

Thank you for your constructive thoughts BP!

Pen Fed vs US Bank HELOC Shopping for HELOC’s I feel I have narrowed my focus from many, to a couple of options. With so many variables, I would love some feedback from people who have a HELOC. Pen Fed currently offer a HELOC at: 4.5% There is also an interesting 5 year offer with a rate of 3.75%, 15 year term (2% due of balance each month). US Bank offer a higher rate approx. 5.80% (as of today), no fees if you are a platinum member (must have at least 25k balance to qualify) They also offered a 5 year fixed rate of 5.19%. I would be using this HELOC to BRRRR property. So my question is basically, which is better for me? I don't like the idea of paying back 2% of the loan per month since the goal is to rehab with a higher ARV and obtain a conventional loan, paying back the HELOC in full. Any BRRRR pro’s talk me through the best use of a HELOC? Should I just elect to pay interest and then when higher ARV of property appraised and loan issued, pay back in full? Thank you for your constructive thoughts BP!

BP – I would love your input on any of the following points (1, 2, 3, 4, 5) I am excited to be at this stage but wonder if I am a little ahead of myself. I have scheduled a HELOC meeting with the bank as I would like to apply for one and use some equity from our home to purchase our second deal. We have approx. $150k equity in our home. Owe $281k on the mortgage. The bank said they would check our ‘debt to income’ first before we go further. 1) I have a student loan (8k left) which I am aggressively paying down each month – between $750 -1000 but could deflate these payments if it negatively affects my HELOC success i.e. pay less per month. 2) I also wanted to clarify – my mortgage payment does that include the escrow payment for property taxes etc? My mortgage is $1,346 and escrow payment is $416. 3) Is my wife’s salary included in this (she earns more than me)? 4) When do I mention the income from our first rental? 5) I am have been studying and feel ready to at least have a HELOC in place so that when I find my deal …I can take action! Thoughts? Many thanks, Jonny

BP – I would love your input on any of the following points (1, 2, 3, 4, 5) I am excited to be at this stage but wonder if I am a little ahead of myself. I have scheduled a HELOC meeting with the bank as I would like to apply for one and use some equity from our home to purchase our second deal. We have approx. $150k equity in our home. Owe $281k on the mortgage. The bank said they would check our ‘debt to income’ first before we go further. 1) I have a student loan (8k left) which I am aggressively paying down each month – between $750 -1000 but could deflate these payments if it negatively affects my HELOC success i.e. pay less per month. 2) I also wanted to clarify – my mortgage payment does that include the escrow payment for property taxes etc? My mortgage is $1,346 and escrow payment is $416. 3) Is my wife’s salary included in this (she earns more than me)? 4) When do I mention the income from our first rental? 5) I am have been studying and feel ready to at least have a HELOC in place so that when I find my deal …I can take action! Thoughts? Many thanks, Jonny

Just a positive update ... Issued notice. Received cash next day to square up rent and late fee!! Success and a clear system in place :) Thanks again!

Thank you all for the information and nudge I needed. We have a consistent and systematic plan for this and I have issues the formal notice and charge. Much appreciated!

Hello all, New renter has been late twice with partial rent payments. He paid in full a week later. My main issue is he has not been up front with me after I called him. Blamed the bank and said "would be in next few days" then when I checked the bank it was short... I am planning a chat face to face to enquire into a possible reason...then ensure he knows next month (if late) will be a late fee. Any thoughts or feedback? This is my first of 7-8 renters who have been late...

@Kyle @Tan Thank you gents. Forming a solid vision and refining my strategy! Much appreciated.

Thank you for clarifying Peter! Agreed about council valuation. I feel the cost of an official appraisal would put us in a good position to meet with the bank? Few hundred bucks to maximize our loan potential?

Thank you Greg - you made some helpful pointers! Appreciate your time and knowledge!