topic Re: My 1st HELOC - through US bank - any advice ? Are HELOCs adjustable? in Mortgage Loans

My 1st HELOC - through US bank - any advice ? Are HELOCs adjustable?

Sk323i — Sun, 31 Jan 2021 19:43:09 GMT

I have a home - valued at approx. $310K (Last Appraisal was done at 275K about 1 year ago - but homes in the area have shot up in price).

Current mortgage balance is $203K.

I am looking to move -- to a more quiet area and less dusty area.

I applied for a 30K - HELOC through US Bank.

The estimator said 5.2% interest rate - 10 year draw - 20 year payment term.

Puts the payment around $130 a month.

I have over 100K income - so i'm not too worried about the payment.

I will use this HELOC as a Down Payment on a new home -- which will cost approx. 300K.

I will then rent my current home and get a new rental income cash flow of about $600 a month.

I plan to pay off the HELOC with this new cash flow - should have it paid off in approx. 6 years.

Does this sound bad for any reason?

My current score is 690.

I could probably pay off a CC - and get it bumped over 700 - but i dont want to blow through my savings to pay off a CC and then not have any savings.

Re: My 1st HELOC - through US bank - any advice ? Are HELOCs adjustable?

UpInSmoke — Sat, 19 Jun 2021 19:28:18 GMT

@Sk323i Great question. I'm sorry no one responded to your question, but I'm curious to find out what you ended up doing and how you fared? I'm thinking oh doing this exact same thing. I've been hesitant just because of the significant increase in home values in my area, but I'm not trying to get rich quick. I'd just like to create a little more income for myself and hopefully take down another asset to better prepare for retirement in the future. Thanks in advance for your response!

Re: My 1st HELOC - through US bank - any advice ? Are HELOCs adjustable?

UpInSmoke — Sat, 19 Jun 2021 19:53:20 GMT

@Sk323i I just read in your recent post that you are in AZ. So am I. Gilbert. I'm really interested to know how your process is unfolding and your thinking around it. Hope to hear your response. TIA

Re: My 1st HELOC - through US bank - any advice ? Are HELOCs adjustable?

Sk323i — Sun, 07 Aug 2022 16:37:28 GMT

@UpInSmoke - it did not turn out so great for me.

I got a nice home -- but i'm stuck with a variable rate HELOC that has gone from 5% to 6.3% just in the last month.

I dont know how im going to get myself out of this mess.

I need 75K to pay off the HELOC

Re: My 1st HELOC - through US bank - any advice ? Are HELOCs adjustable?

UpInSmoke — Sun, 07 Aug 2022 19:10:40 GMT

@Sk323i wrote:
@UpInSmoke - it did not turn out so great for me.

I got a nice home -- but i'm stuck with a variable rate HELOC that has gone from 5% to 6.3% just in the last month.

I dont know how im going to get myself out of this mess.

I need 75K to pay off the HELOC

Slowly but surely. Just start chipping away at it. 6% is better than 27%. You can do it!!