Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Kyle B.

Kyle B. has started 3 posts and replied 14 times.

Post: HELOC Questions, Considering PenFed 5/5

Kyle B.Posted
  • Ann Arbor MI, USA
  • Posts 15
  • Votes 6

I did not end up going with the PenFed 5/5. We undertook a remodel to our primary residence that is converting it from a 2bd/1.5ba to a 3bd/2.5ba (with no changing of exterior walls or foundation/basement, thus lower cost than a bigger remodel), and will be aiming to get a HELOC with Alliant Credit Union as soon as the remodel is complete. We're waiting for the remodel to be complete with the expectation of a higher appraisal value considering the recent remodel, and thus a bigger HELOC. With Alliant, there will be a fee to keep the HELOC open each year (the fee is waived in the first year), but we won't be hit with a repayment penalty if the HELOC is closed within a couple of years due to sale of the home (which would have been the case with PenFed). PenFed 5/5 still looks like a great option if you're going to keep your home and the HELOC for more than 3 years though!

Post: New Seattle and King County Investor

Kyle B.Posted
  • Ann Arbor MI, USA
  • Posts 15
  • Votes 6
Thank you all for the warm welcome! It’s great to find a community of like minded folks.

Post: HELOC Questions, Considering PenFed 5/5

Kyle B.Posted
  • Ann Arbor MI, USA
  • Posts 15
  • Votes 6

I'm looking at getting a HELOC on my primary residence, and am specifically considering the PenFed 5/5 because it locks in the current rate of 5% for the next 5 years. With the fed raising interest rates, I think locking in 5% for a few years is a good way to go, rather than having the rate adjust up with the prime rate. I'm likely to sell my primary residence in about 3 years, and there is a prepayment penalty on the HELOC if you close it within 3 years. Thus I'll want to get this HELOC asap. I would like to get as large of a HELOC as possible so that I can use it if and when a deal comes up in the high cost market I want to invest in, the greater Seattle area.

Do you have any experience with the PenFed 5/5 HELOC? How was your experience? Is there anything I should be aware of?

If I make a large additional principal payment to my primary mortgage today, and then apply for the PenFed HELOC tomorrow, will the up to date (lower principal) remaining mortgage amount show up in PenFed's underwriting (or does it take longer for it to show up on their end)?

Thank you for your help!

Post: New Seattle and King County Investor

Kyle B.Posted
  • Ann Arbor MI, USA
  • Posts 15
  • Votes 6

I'm located in Ann Arbor, Michigan, but am originally from Seattle, Washington and am aiming to invest in the greater Seattle and King County area. My goal is long term passive income, and thus I'm learning as much as possible about buy, rent, and hold strategies. I am open to buying turn-key, rehabbing, or developing new construction; with a focus on 1-4 unit properties. I highly prefer conventional financing if possible, but am exploring other options for properties that require rehab before then refinancing into a conventional mortgage. I want to stay in the high end market in order to maximize the cash flow per deal and reduce the amount of total property management required. In the short term I'm working to increase my knowledge about real estate investing and the markets I want to invest in, create opportunities for capital, and monitor for deals.