Hello,
I just purchased a property less than 30 days ago and I’m looking for a heloc.
1st mortgage $57,000
ARV $115,000
I got closing cost estimates from a mortgage company of around $3,500 for 95% LTV at 6.375% 30yr fixed
My scores are around low 700’s and I can go full docs.
Is the closing fees too high or should I continue to shop around? They don’t have any issues with the seasoning.
thanks for any advice.
YIKES!!!
Let’s see: Your line is around $50,000. That’s close to 7pts. Most states have restrictions to how much is charged on loans. This might be pretty close to the max.
Typically a mortgage broker does not get paid a decent size premium from the bank for doing a 2nd mortgage so they need to charge more on the front end. This is specially true if only doing a 2nd not in combination with a first; and also a low loan amount.
Try contacting some of your local banks. Usually there loans are much cheaper and quicker. Normally, I refer most of my clients with low loan amounts and standalone 2nd/helocs to them.
That’s way too high! Try calling National City yourself.
you can call around to banks and the will not charge you anything as long as you keep it open for 3 years. No closing cost at all.
I just checked into it for my Aunt.
Wow! If I read your post correctly you said the closing cost amount of $3500 was for a HELOC. That is insane!!! It is true that brokers make very little on heloc’s and will sometimes charge an origination fee (pts) to compensate. HOWEVER, I have many clients who have come to me for their HELOC needs and there are many investors that will not charge any closing costs - ZERO! You definitely need to shop around some more…a couple of the banks I use for my heloc’s that do not charge cc are: Citi, and Chase. Some banks do have the 2-3 yr requirement to keep the line open or you will be assesed an early closure fee. But, if you are going to be in the property long enough that may not be a concern for you. Another thing to keep in mind, if your scores are high enough (low/mid 700’s) you may be eligible for a stated heloc which will enable you to close even faster! Keep shopping around in the meantime…
Citi home equity does have a sweet HELOC… for wholesale mortgage brokers!!!
Very true, for wholesale brokers 
Thought perhaps freedom777 could mention them when shopping around though…
Go Freedom. It’s your birthday.