topic in Mortgage Loans

Great Intro Rate HELOC

DR527 — Sun, 25 Jun 2023 23:49:45 GMT

My wife and I just closed on a HELOC today. Man I so grateful that I found this forum and the advice from this community have been life changing. 7 years ago we were spinning our wheels trying to buy our first home. When we finally deciding to take our credit seriously, we join MYFICO. After years of working on our scores. We brought a home a week before the Covid-19 outbreak, we got two new leases for a awesome price when no one was spending money early in the pandemic. And today we were able to get a HELOC with 4.25% introduction APR for 24 months, after our house appraised for $110k more then we brought in for 3 years ago! This forum is a wealth of knowledge and I know its not always easy to climb out of your situation. But this may be the best place to get help to do it.

Re: Great Intro Rate HELOC

icebain — Mon, 12 Jun 2023 23:56:48 GMT

Congratulations!

Who did you go through? Any data points? Just trying to get a feel for the market right now as well.

DR527 — Tue, 13 Jun 2023 02:33:36 GMT

Re: Great Intro Rate HELOC

DR527 — Tue, 13 Jun 2023 02:27:18 GMT

It's a local small CU. Honestly you can miss it, if your not looking for it. They had a promo sign out front.

Data Points:
- Pulled TransUnion mine 649, wife's was 679.
-Loan fee was $250.

-Appraisal came back right on the money. -80% LTV

-45% DTI

- 33 days from application-funding.

Re: Great Intro Rate HELOC

ShanetheMortgageMan — Tue, 13 Jun 2023 17:07:14 GMT

That is a great rate for your scores, congrats!

Re: Great Intro Rate HELOC

DR527 — Tue, 13 Jun 2023 17:32:56 GMT

Yeah our DTI is right at 45%. The Loan officer said the reason the application was approved was because of the overtime I normally get. I work a ton of overtime and have for years so they were able to push it through. Our DTI will be in the single digits here in a month.

Re: Great Intro Rate HELOC

markbeiser — Wed, 14 Jun 2023 04:45:34 GMT

What is the rate after the promo period is up?

Re: Great Intro Rate HELOC

DR527 — Wed, 14 Jun 2023 07:37:18 GMT

After the promo ends our rate is 2.8%. Prime + 2.8%, hopefully federal rate goes back down.

Re: Great Intro Rate HELOC

markbeiser — Thu, 15 Jun 2023 04:22:24 GMT

@DR527 wrote:
After the promo ends our rate is 2.8%. Prime + 2.8%, hopefully federal rate goes back down.

I'd love to have been able to find a nice intro rate like that, maybe I should have checked with CUs that don't have a fully online process.
I did get prime+0% though, so not unhappy with it.

Check the fine print on your adjustable rate, you may be locked into a minimum interest rate based on the prime rate at the time of closing.
My minimum is 7.5%, even if the prime rate goes lower than that.
My plan is to pay off what I drew from it rather agressively, so I can close it out in 3 years without penalty, and open a new one if the prime rate goes low again.
I'm not holding my breath on the prime rate going down much any time soon though.😏

Re: Great Intro Rate HELOC

stinastina — Thu, 29 Jun 2023 14:14:27 GMT

Congratulations ! Can you point me to the threads on the HELOC process ? Or if you don't mind sharing, what are the key points ?

Re: Great Intro Rate HELOC

citymunky — Mon, 24 Jul 2023 23:04:55 GMT

4.25% is a great rate, do you mind sharing the bank you used? Thanks.