Looking to establish a HELOC on our primary residence for future investments. What terms are being offered right now? I’m looking at 110% of market value. We have good credit and income. How do the rates differ for on LTV’s?
So you want to borrow 10% more than your property is worth? In a declining market that will be very difficult if not impossible. If I were you I would look for 80-90% and hope that you can find it.
I just want to have access to more funds if I need them. I don’t want to borrow more than my house is worth. Proper leveraging would be used. Are you telling me there are no lenders offering more than a 90% HELOC? Not sure about that… I know the market is declining, but due to the size, location, price bracket, and quality of our home, and our local market, we probably won’t see any loss in value any time soon, if at all.
I was just responding to what you were looking for. I would start looking at small local banks. The major national lenders are shutting down HELOC’s not giving them away anymore.
You are looking at accessing 89% LTV of your home. Rates are usually prime rate + .75. (Prime rate today is 6.5%). Nobody will do 110%. This is fresh from a lender I spoke with today. I will send you an email.
I’m pretty sure Irwin Home Equity (wholesale, you will have to use a broker) is still doing 125%'s, unless they have changed something recently. Only thing is it won’t be on a HELOC, it would be a straight up second mortgage; which might not be what you are looking for.
Good luck sir!
I have a home equity line on my primary residence at Prime -.25% - as long as I have an active checking account with them - from which they auto withdraw the interest due each month.
I’ve also dealt many times with Wachovia on investment condos - and they’re still doing equity lines up to 80% LTV at prime + ~.75% for good credit. If you’ve owned less than 1 year, they automatically use the purchase price.
That’s been my experience.
Just wanted to let people know what I’ve found. Called banks, credit unions, and brokers. MOST offer 80%-90% at prime or prime +1. Found 3 that would go 100% on a HELOC. 100% LTV rates are about prime +2. However, my local credit union (that I’ve had an account with for years) is offering 100% at 7.25% fixed for 7 years on a 12 year term. They will adjust the rate down 15 basis points (.15%) if you have the payment automatically deducted from your account. However, to get 100% LTV you need to have very good credit and the right debt to income and all that. Figured I’d let everyone know…
Arty,
Thank you for the update. That is great information.