NFCU Home Equity Loan questions

[txgal73]

Hi all, 

So, our DTI is 25%, scores ranging from 750-770 and we are looking at our bank (NFCU) to do a home equity loan.

Here's the issue: If we wait until April, we can pay off the majority of our debt and our DTI would be 10%, but the interest rate may suck by then. Right now it's 6.6%.

If we go for it now, our DTI is 25%. No negs on the credit, but 30k in CC debt, which I don't want to have that keep us from a loan. I'm not sure it it will, but it's possible, I suppose.

So, I'm looking for what y'all may think? Has anyone done a home equity loan through them?

[Revelate]

Best bet is to just ask them, and if you like what you hear just go now.

HELOCs generally are variable APR unless they have some specialized provision so now or later doesn't matter too much other than to say I assume the HELOC is also going to be used to nuke the CC debt and that's a straight win done right now.

[txgal73]

Thank you. I will do that.

It's not a HELOC, it's a fixed home equity. I'm not a fan of ARM loans.

[Revelate]

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@txgal73 wrote:

Thank you. I will do that.

It's not a HELOC, it's a fixed home equity. I'm not a fan of ARM loans.

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Oh!  I badly misread.

AFAIK fixed home equity loans basically underwrite as second mortgage: DTI < 43% not a problem.

[cashorcharge]

In my own experience, there was a greater focus on the equity I was borrowing against.  My DTI is much lower but everything was predicated on how much I was borrowing so with your current DTI, I don't think that's an issue.  I found working with NFCU easy and agreed with @Revelate , you can reach out to your underwriter and they will walk you through the specifics and explain "IF" a better/more cost effective option is available and if your DTI is an issue in what it costs you to borrow