Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Currently have a HELOC for $75,000 (No Balance) at a rate of 3.5%. With rates so low right now I am trying to get a HELOC for $150,000 to $200,000 with a rate under 2% if it exists. Seems like it does with ads but no real concrete links to specifics.
Anyone know of any banks that offer HELOCs under 2%?
Valuation - Home $2,000,000
Mortgage Balance - $0
As you can see I am looking for under 10% as far as line of credit goes
Third Federal usually has excellent rates but there are several things of which you should be aware.
First, they don't write mortgages in all states and the rates vary by state.
Second, their payments are not interest-only during the draw period. Every other HELOC I had required interest-only payments during the draw period - no repayment of principal. Third Federal requires a monthly payment consisting of the interest amount plus an amortization of the principal. This was a surprise to me after having HELOCs with four different banks before getting a HELOC from Third Federal.
Third, their interest rates are usually split based on outstanding balance, not credit available. For example, interest rate is Prime - 1.01% (currently 2.24%) if outstanding balance is more than $50,000 and interest rate is Prime - 0.26% (currently 2.99%) if balance is greater than $50,000. So, once your outstanding balance drops below $50,000, your interest rate increases.
Last, the annual fee is waived for the first year only.
I have found them to be helpful and a good bank. I have had two HELOCs with them in two different states.
In my location the annual fee is $65, but yours might be different.
They also give you an estimate of other fees that might be payable at closing. Don't forget local/state taxes and registration/recording fees. These are large numbers here in FL. While the banks make a big deal of "no closing fees", there are transfer costs due. You could have to pay more than $1,100 to record your mortgage in FL, compared to $0 in CT. The website shows these amounts when you input your specifics.
Third Federal usually has excellent rates but there are several things of which you should be aware.
First, they don't write mortgages in all states and the rates vary by state.
Second, their payments are not interest-only during the draw period. Every other HELOC I had required interest-only payments during the draw period - no repayment of principal. Third Federal requires a monthly payment consisting of the interest amount plus an amortization of the principal. This was a surprise to me after having HELOCs with four different banks before getting a HELOC from Third Federal.
Third, their interest rates are usually split based on outstanding balance, not credit available. For example, interest rate is Prime - 1.01% (currently 2.24%) if outstanding balance is more than $50,000 and interest rate is Prime - 0.26% (currently 2.99%) if balance is greater than $50,000. So, once your outstanding balance drops below $50,000, your interest rate increases.
Last, the annual fee is waived for the first year only.
I have found them to be helpful and a good bank. I have had two HELOCs with them in two different states.
Likewise, I've had a HELOC with Third Federal for several years at prime -1.0 --- I got the HELOC for a "just in case option to using other investment funds ... and have not used it yet. Nevertheless, I've found Third Federal easy to work with and quite competent in their HELOC practices.
Third Federal usually has excellent rates but there are several things of which you should be aware.
First, they don't write mortgages in all states and the rates vary by state.
Second, their payments are not interest-only during the draw period. Every other HELOC I had required interest-only payments during the draw period - no repayment of principal. Third Federal requires a monthly payment consisting of the interest amount plus an amortization of the principal. This was a surprise to me after having HELOCs with four different banks before getting a HELOC from Third Federal.
Third, their interest rates are usually split based on outstanding balance, not credit available. For example, interest rate is Prime - 1.01% (currently 2.24%) if outstanding balance is more than $50,000 and interest rate is Prime - 0.26% (currently 2.99%) if balance is greater than $50,000. So, once your outstanding balance drops below $50,000, your interest rate increases.
Last, the annual fee is waived for the first year only.
I have found them to be helpful and a good bank. I have had two HELOCs with them in two different states.
I have a typo: Should read:
"Third, their interest rates are usually split based on outstanding balance, not credit available. For example, interest rate is Prime - 1.01% (currently 2.24%) if outstanding balance is more than $50,000 and interest rate is Prime - 0.26% (currently 2.99%) if balance is less than $50,000. So, once your outstanding balance drops below $50,000, your interest rate increases."
Thank you all for the responses. Probably doesn't make sense for me. It seems as if HELOCs are gone. Everything is cash out refinance. Don't need the cash. Third Federal not offered in my state
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Likewise, I've had a HELOC with Third Federal for several years at prime -1.0 --- I got the HELOC for a "just in case option to using other investment funds ... and have not used it yet. Nevertheless, I've found Third Federal easy to work with and quite competent in their HELOC practices.
