@fishbjc wrote:
I'm hoping to get a heloc with NFCU. My house has held steady in the value, 100k equity. I need 20k. I've been approved for their o/d protection and a visa (don't know limit yet).
Anyone have experience with the HELOC/NFCU????
When I got a HELOC from US Bank a few months back, almost all lenders drew the line at 85% combined LTV. They may have tightened their requirements by now. But assuming that the limit hasn't changed, as long as your HELOC + outstanding mortgage balance doesn't exceed 85%, then you should have no problem getting a HELOC.
On a related subject, much has been written on these forums about whether a HELOC is considered mortgage/installment debt or revolving debt. It is commonly accepted that if the limit of the HELOC (not the balance, mind you) is $50,000 or more, then it will be treated as an installment loan in the FICO scoring system. If it is below $50,000, then it will scored as revolving debt - that is, it is treated like a big fat credit card. If you max out a HELOC in the latter situation, it will cause your utilization to soar and may drop your credit score.
My HELOC is in excess of $50,000, and it is completely maxed out (used it refinance a home equity loan with a much higher interest rate). It dropped my score by all of 1 point.
