I talked to a lendor yesterday. I am interested in getting into real estate investing. I do not have much cash in the bank, so I wanted to get a HELOC for 50k. I have a rate of 6.25 currently. Problem is my fico is 550 in Equifax and Experian. It is 660 with TransUnion though. The loan broker said that he could get the HELOC with Secured Funding for 11.75%. Is 3.5 percent over prime reasonable?
Curtis
Is 3.5 percent over prime reasonable?
Not knowing all of the parameters that is very plausible.
What parameters would you like to know. I would be willing to share the information with you.
What is the CLTV? Secured Funding has a “Transunion only” score program and that is why they are able to do the loan. The rate seems to be about right based on my experience with my “sub-prime” clients.
I is a Secured Funding loan. How much does a loan broker make on that kind of deal? You are saying that it sounds resonable though?
A loan broker makes very little on a HELOC but just as much work is put into it as if doing a refi or purchase money. It depends on the loan amount too.
Yes, Secured Funding is a sub-prime lender and sub-prime HELOCS are high in rate. What was the CLTV again?
What is a CTLV?
Combined Loan To Value. Balance on your first mortgage plus the loan amount on your second divided by the appraised value equals your CLVT. Typically, the higher your CLVT, the higher your rate.
Go to a credit union. They are not for profit.Let me know how it turn out. What is it exactly you are trying to do? Need more clarity in your ideals.