I have taken two mortgages on two different properties. I paid off one of them. I am paying the 2nd one.
What are the catches of taking a HELOC ? Fees/interest rates etc.
Not much to them, though some are structured as a traditional LOC, others have a draw period and then a paydown period. Depends what you need, I prefer the traditional revolving line of non-trivial size, but I usually have decent cash flow and that may be changing so I may change my opinion.
Interest rates are variable based on Prime + something which is better than most things other than maybe a HEL while we're in an increasing rate environment but those are a lot more expensive to get done. Fees on a HELOC if you own your place outright may be darned close to zero (quite likely will skip the appraisal or use the automated one, plusses and minuses though if you're trying to get the max equity out of your home though). Talk to some of your financial institutions and see.