FAQ- The Consolidated HELOC Home Equity Line of Credit thread, and list of BEST HELOC DEALS


  • Global Moderator

    This thread’s purpose is to consolidate discussion of all HELOCs and list current best rates and fees.

    DEFINITION OF HELOCS- (To be added)

    WHY GET A HELOC EVEN IF YOU DONT NEED ONE!
    HELOCs have many advantages, even if left “untapped” and NEVER USED!

    AND NOW FOR THE BEST HELOC DEALS (not in particular order)

    Please try to organize by lowest rates. Current (31 Dec 2016) prime rate 3.75%

    1. https://www.hfcu.org/ Rate is (0.5% below Prime) for 75% LTV and Prime for 80% LTV. They do a free appraisal if they cannot get the value of the home in the Home Value Estimator (drive by for less than 250K in loan value, more detailed for loans more than 250K). They offer a no closing cost HELOC with the option to lock to a fixed rate [MAY need to pay $200-300 recording fee, but in IL at least absolutely no fees]. BUT: They don’t lend to Texas! As of December 2015, Hanscom has reduced their CA HELOC LTV to 50%.
      [One member had an isolated “BAD EXPERIENCE”. Another found them very responsive and easy to deal with.]

    1.5 Please try to organize by lowest rates. Current (31 Dec 2016) prime rate 3.75%

    1. https://www.hfcu.org/ Rate is (0.5% below Prime) for 75% LTV and Prime for 80% LTV. They do a free appraisal if they cannot get the value of the home in the Home Value Estimator (drive by for less than 250K in loan value, more detailed for loans more than 250K). They offer a no closing cost HELOC with the option to lock to a fixed rate [MAY need to pay $200-300 recording fee, but in IL at least absolutely no fees]. BUT: They don’t lend to Texas! As of December 2015, Hanscom has reduced their CA HELOC LTV to 50%.
      [One member had an isolated “BAD EXPERIENCE”. Another found them very responsive and easy to deal with.]

    1.5 https://www.towerfcu.org/borrow/home-equity-options/ (new link, 9/23/2017)
    Rate is (0.5% below Prime) and NO closing costs or fees. With a rate of (prime -.50%), a home equity line of credit gives you a credit line from $5,000 to $312,700 when the credit limit does not exceed 80% of the equity in your home. A credit line greater than 80% of your home’s equity is available up to $250,000 at a rate of (prime + 1%). NOTE: They don’t lend to Texas.

    1. https://www.deltacommunitycu.com/personal/loans/home-loans/home-equity-line-of-credit.aspx
      08/27/12 No rate info on HELOCs. Rate for 80% LTV (0.25% under prime) and for 90% LTV (0.25% over prime). They do not have a no closing cost HELOC but the closing costs are around $100 (if they do not need an appraisal). Will not do HELOC in Texas.

    2.5 https://www.dcu.org/loans/home-equity-plus.html
    No annual fees, closing costs or points. Rate is (0.25% under prime)
    Minimum monthly payment – Only 1% of outstanding balance. Borrow up to 80%* of your home value minus your first mortgage.
    Available in all states with the exception of TX, CT, NC, WI and WV.

    1. Secny FCU Indicates promotional rate of 1.99%. No info on term or regular rate.
      01/21/10 Indicates promotional rate of 1.99%. No info on term or regular rate.
      2.99% for first yr. then adjusts to prime minus 0. Can borrow between 10-150k.Confirmed by phone 2/17/10
      80% max LTV, no closing cost, but must keep for 3yrs. minimum, otherwise must pay closing costs.

    2. Agriculture FCU Prime minus 0%. No point no fee. However, their underwriting tends to make their own rules as they go on - Beware

    3. Pentagon Federal Credit Union - Prime minus 0%. No point no fee. There is a minimum rate floor of 3.75% APR and a maximum rate of 18% APR. You have to pay for an appraisal. Their current rate is 3.75% and their underwriting sucks.

    4. NEW - https://www.sandyspringbank.com/ - Intro rate of 2.75 fixed for first 12 months, prime minus 0.50% subject to 3.25% floor after the intro period on lines of credit of $125,000 or higher, up to 85% LTV. All closing costs paid including full appraisal; must be repaid if closed within three years. Very smooth underwriting process and great customer service. Based on terms posted https://www.sandyspringbank.com/media/8096/ssbloanrates.pdf, eligible properties must be in “certain counties in Maryland and Virginia,” so you basically have to be in their market area to qualify. Rate is (0.5% below Prime) and NO closing costs or fees. With a rate of (prime -.50%), a home equity line of credit gives you a credit line from $5,000 to $312,700 when the credit limit does not exceed 80% of the equity in your home. A credit line greater than 80% of your home’s equity is available up to $250,000 at a rate of (prime + 1%). NOTE: They don’t lend to Texas.

    5. 08/27/12 No rate info on HELOCs. Rate for 80% LTV (0.25% under prime) and for 90% LTV (0.25% over prime). They do not have a no closing cost HELOC but the closing costs are around $100 (if they do not need an appraisal). Will not do HELOC in Texas.

    2.5 https://www.dcu.org/loans/home-equity-plus.html
    No annual fees, closing costs or points. Rate is (0.25% under prime)
    Minimum monthly payment – Only 1% of outstanding balance. Borrow up to 80%* of your home value minus your first mortgage.
    Available in all states with the exception of TX, CT, NC, WI and WV.

    1. Secny FCU Indicates promotional rate of 1.99%. No info on term or regular rate.
      01/21/10 Indicates promotional rate of 1.99%. No info on term or regular rate.
      2.99% for first yr. then adjusts to prime minus 0. Can borrow between 10-150k.Confirmed by phone 2/17/10
      80% max LTV, no closing cost, but must keep for 3yrs. minimum, otherwise must pay closing costs.

    2. Agriculture FCU Prime minus 0%. No point no fee. However, their underwriting tends to make their own rules as they go on - Beware

    3. Pentagon Federal Credit Union - Prime minus 0%. No point no fee. There is a minimum rate floor of 3.75% APR and a maximum rate of 18% APR. You have to pay for an appraisal. Their current rate is 3.75% and their underwriting sucks.

    4. NEW - https://www.sandyspringbank.com/ - Intro rate of 2.75 fixed for first 12 months, prime minus 0.50% subject to 3.25% floor after the intro period on lines of credit of $125,000 or higher, up to 85% LTV. All closing costs paid including full appraisal; must be repaid if closed within three years. Very smooth underwriting process and great customer service. Based on terms posted https://www.sandyspringbank.com/media/8096/ssbloanrates.pdf, eligible properties must be in “certain counties in Maryland and Virginia,” so you basically have to be in their market area to qualify.



  • Need help understanding the different types of Equity Loans offered by PenFed.

    Owe 100k on my home. Based on recent comps, it’s estimated at 205k. I would like to renovate kitchen and roof and budgeting 35k. I plan to sell the house in 2 years. If current plans to sell change, I may refinance and get a second home for a rental. Either way would like to pay off credit line at time of closing.
    Based on my situation, which one would work best for me?

    Home Equity Loan - 60 month, 4.74%, closing cost included (excludes appraisal and notary fees), 85-90% LTV
    Home Equity Line of Credit - 4.25% variable apr (prime + 0%), closing cost included (excludes appraisal and notary fees), 80% LTV
    5/5 Home Equity Line of Credit - 3.75% variable apr(min rate floor of 3.75% and maximum of 18%, closing cost included (excludes appraisal and notary fees), 75% LTV
    Interest Only Line of Credit - 4.25% variable apr (prime + 0%), closing cost included (excludes appraisal and notary fees), 80% LTV

    I appreciate the guidance!


 

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