All Forum Posts by: Paul Dario Jr

The only fees mentioned were if I terminate the LOC within the first 36 months the documentation says they could charge me closing costs at that time.

The HELOC I'm closing on doesn't require me to pay if there is no draw on the LOC. And then if I do draw it's interest only payments for 10 years.

Hey BP. I'm evaluating my HELOC options. I've applied with two banks/credit unions. Here are the details:

Bank #1: approved for $98,600 @ 6.15% for 360 months. Rate is variable monthly. I don't believe an initial draw is required.
Bank #2: pre-approved for $135,000.00 at a variable interest rate of 6.00%. This rate is based on Prime plus a margin of 2.00%. (Rate will never go below 3.25%). The rep said the rate would be 6.25% if I don't take an initial draw on the HELOC. They also said if I borrow at an LTV of 75% instead of 90% I could get a lower rate, 5.25%, but the line max limit would only be $60,000.

I'd like to purchase my first investment property. I don't have a property lined up yet, but I wanted to secure the HELOC so I'm ready to go when I find something to offer on. Probably out of state.

My question is whether or not I take the higher interest rate HELOC so that I can have the higher line of $135k to give me more buying power later on when I find a property.

I'm new to this and would love some input. Thanks!

 Thanks Andrew. I just DM'd you.

Hey all. I'm a new member to BP and excited to be here in this community.

I'm looking to get a HELOC on my primary residence to help finance a future 1st investment property. Here's the numbers: Current mortgage $528K. Estimated appraisal value $783k (according to Zillow).

Here's what the credit union offered me for an IO HELOC:

"Your Home Equity Line of Credit (HELOC) has been pre-approved for $135,000.00 at a variable interest rate of 6.00%. This rate is based on Prime plus a margin of 2.00%. (Rate will never go below 3.25%)." No closing costs if HELOC stays open for at least 36 months.

Does this seem reasonable?

Thanks!