HELOC (by mapleaf18 [NY]) Sep 20, 2022 5:37 PM|
HELOC (by Pmh [TX]) Sep 20, 2022 5:49 PM
HELOC (by MikeA [TX]) Sep 20, 2022 7:15 PM
HELOC (by Ray-N-Pa [PA]) Sep 20, 2022 8:52 PM
HELOC (by Tonia [RI]) Sep 21, 2022 4:54 AM
HELOC (by mapleaf18 [NY]) Sep 21, 2022 7:01 AM
HELOC (by DJ [VA]) Sep 21, 2022 8:28 AM
HELOC (by S i d [MO]) Sep 21, 2022 8:41 AM
HELOC (by mapleaf18 [NY]) Sep 21, 2022 1:26 PM
HELOC (by DJ [VA]) Sep 21, 2022 2:07 PM
HELOC (by Ray-N-Pa [PA]) Sep 22, 2022 8:54 AM
HELOC (by Jason [MI]) Sep 23, 2022 8:56 PM
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HELOC (by mapleaf18 [NY]) Posted on: Sep 20, 2022 5:37 PM
So a couple years ago I used a HELOC on my first rehabbed duplex to buy the 2nd one. The HELOC is an adjustable rate and has been going up incrementally over the last couple of months in which I get an adjustment letter.
Do you think I should roll it over into a fixed rate at another credit union? The loan is for about $40K
HELOC (by Pmh [TX]) Posted on: Sep 20, 2022 5:49 PM
Unfortunately I think you have missed the boat. --166.196.xx.xx
HELOC (by MikeA [TX]) Posted on: Sep 20, 2022 7:15 PM
YES! Not just for interest but if things get tight the bank will call the HELOC and you have 30-60 days to pay it off. Based on past experience, the higher interest rates go the harder it will be to find a lender so better to do it now. --209.205.xxx.xx
HELOC (by Ray-N-Pa [PA]) Posted on: Sep 20, 2022 8:52 PM
With a fixed rate HELOC - which are rare, you can use accelerated banking to pay off your debt faster- even if the rate is higher --24.101.xxx.xxx
HELOC (by Tonia [RI]) Posted on: Sep 21, 2022 4:54 AM
My bank will not offer HELOC on rental property, but only primary home. Is there a recommended bank that will offer for rentals? --71.117.xxx.xx
HELOC (by mapleaf18 [NY]) Posted on: Sep 21, 2022 7:01 AM
yes Penfed credit union --72.231.xxx.xx
HELOC (by DJ [VA]) Posted on: Sep 21, 2022 8:28 AM
I LOVE using my HELOC to fund "cash" purchases and rehab expenses, so I can definitely appreciate where you are coming from.
I just applied for a HELOC on my free&clear rental house, today -at my local credit union.
The fixed rate version only has a draw period of 2 years.
Adjustable rate has a draw period of 20 years, and with my qualifications, the rate is prime + 0.
My point is: is there a fixed rate HELOC that meets your needs? If yes, then it's generally a good idea to go fixed - especially at a time like now when rates are still going up.
Of course, in addition to draw time, you'll want to compare how much they will give you, the minimum payment, the repayment period, closing costs. And closing one & opening another will have some effect on your credit score.
I also think it's not a bad idea to bank consistently at a place where they know you and your good history, and you have assets there. I just think (hope) it makes the process smoother. --68.229.xxx.xxx
HELOC (by S i d [MO]) Posted on: Sep 21, 2022 8:41 AM
The ideal time to plant a tree and refinance an adjustable rate loan was 2 years ago.
The next most ideal time is today.
Get OUT of adjustable rate products. As you've seen, rates are going up. FED hiking another 0.75 this week. If that doesn't tame inflation, they will hike it further.
One thing is certain: it is NOT going down any time soon. And even if I'm 100% wrong...you can always refi to a LOWER fixed rate.
The best part of fixed rate mortgages is the borrower always wins. If rates go down, you're already locked in at 7%...then refi at 5%....then refi at 3%. If rates stay flat or go up, you stay at 7% and inflation is helping pay off the real value of the loan.
Heads you win; tails the bank loses.
HELOC (by mapleaf18 [NY]) Posted on: Sep 21, 2022 1:26 PM
Just trotted down to my local credit union and they can give me a fixed rate of 6.25%. Current HELOC rate is 7% and rising. I mean the interest is still deductible as it was used to finance the purchase and repair of duplex #2, but still... --72.231.xxx.xx
HELOC (by DJ [VA]) Posted on: Sep 21, 2022 2:07 PM
Wait - are you saying that you still have the entire balance in the HELOC and you are using it like a long-term loan?
If that's the case, and you can turn it into a fixed-rate mortgage - a product intended to be long term - then YES! Do it NOW!
I use mine as a short-term, quick loan to myself & pay off pretty quickly. That's different. For me it's the convenience, and I don't pay TOO much interest. --68.229.xxx.xxx
HELOC (by Ray-N-Pa [PA]) Posted on: Sep 22, 2022 8:54 AM
Let me REPEAT this as it can save you six figures if you have a fixed rate HELOC.....look up and implement accelerated banking practices.
HELOC (by Jason [MI]) Posted on: Sep 23, 2022 8:56 PM
I use heloc on personal home an commercial line of credit using rentals as collateral
Heloc is 5%
LOC just went to 7%.. --107.122.xxx.xx
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