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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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For those who took out a HELOC or are considering it
If you don't mind me asking and if you are willing to tell me, if you took out or are taking out a HELOC for some improvements-how much did you take out and what interest rate did you get?
Is your plan to pay more than the interest payment every month or send additional larger payments to the line over time? Or, maybe just refi the loan at the end of the draw period?
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Posted 8/16/06 10:10 AM  |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: For those who took out a HELOC or are considering it
bumping...feeling lonely here...
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| Posted 8/16/06 11:20 AM |
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luvsun27
Check out my cool glasses
Member since 5/05 8135 total posts
Name:
Kim
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Re: For those who took out a HELOC or are considering it
Well...when I took out the HELOC 2 years ago..the interest rate was about 7% (prime was much lower then). We took out the HELOC for 125K. Now that interest rates are higher (it's variable), the interest rate is hovering around 10% these days...so the principle I pay these days, is very low, to what I was paying when I started...it's mostly interest now 
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| Posted 8/16/06 11:23 AM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: For those who took out a HELOC or are considering it
My situation is a little different, but we took a HELOC to pay for the downpayment and renovations on our new house. We took a loan of about $90k and the interest rate was somewhere around 7.5%. But, we paid it back once we sold our house, which was about 2 months later...
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| Posted 8/16/06 11:25 AM |
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ODonnell
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Member since 9/05 5983 total posts
Name:
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Re: For those who took out a HELOC or are considering it
We just took out a HELOC for an extention starting in October (hopefully) Check out BFCU, they have the best rate that is fixed for 6 months at 5.49%. After the 6 months it goes to prime + 1/4%. We are hoping to do a complete new refinance in a year anyway to bring our mortgage down to a 15-year , so that option was great for us.
Message edited 8/16/2006 11:41:11 AM.
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| Posted 8/16/06 11:40 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: For those who took out a HELOC or are considering it
Posted by ODonnell
We just took out a HELOC for an extention starting in October (hopefully) Check out BFCU, they have the best rate that is fixed for 6 months at 5.49%. After the 6 months it goes to prime + 1/4%. We are hoping to do a complete new refinance in a year anyway to bring our mortgage down to a 15-year, so that option was great for us.
that's a great rate..too bad it goes up above prime..I will probably need to hold it longer than that..
I will call them nevertheless..it can't hurt to shop this.
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| Posted 8/16/06 11:47 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: For those who took out a HELOC or are considering it
what about a HE Loan?? those are usually at fixed rates, but you pay principal too monthly, not just interest.
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| Posted 8/16/06 11:49 AM |
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june262004
But I love the Snow!
Member since 5/05 15379 total posts
Name:
Kristin
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Re: For those who took out a HELOC or are considering it
I took our a heloc with wamu Since I work for them 
We got prime minus a .25% on the variable portion and then fixed half of it. (wamu has this product where you can fix a loan in your line) And by fixing it you lock in your interest rate and also pay principal and interest.
Im not a huge fan of loans only because you get it in one lump sum and pay back the entire thing. I just want to pay on what I use!
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| Posted 8/16/06 12:04 PM |
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ODonnell
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Member since 9/05 5983 total posts
Name:
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Re: For those who took out a HELOC or are considering it
Posted by Meaghan729
what about a HE Loan?? those are usually at fixed rates, but you pay principal too monthly, not just interest.
There may be closing costs involved in a HE if it's above a certain amount.
ETA: I pay principal on my HELOC, in fact, most of the payment is principal.
Message edited 8/16/2006 12:16:51 PM.
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| Posted 8/16/06 12:13 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: For those who took out a HELOC or are considering it
Posted by june262004
I took our a heloc with wamu Since I work for them
We got prime minus a .25% on the variable portion and then fixed half of it. (wamu has this product where you can fix a loan in your line) And by fixing it you lock in your interest rate and also pay principal and interest.
Im not a huge fan of loans only because you get it in one lump sum and pay back the entire thing. I just want to pay on what I use!
I agree about the HE loan. Chase has offered prime - .5. I can take a 3 year lock and pay 7.8% (right now), 5 year lock 7.9% and a 7 year lock for 8.1%. All current rates as of yesterday. They also have a program where I don't have to lock right now and if I the rate goes down I can lock it then. Also if the rates are ancipated to go up I can lock it before. There are so many loan prgrams out there, I'm still looking..it has to be the right loan ya know? It's just more debt but on the other hand it's going towards the house..
tuff stuff here..
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| Posted 8/16/06 12:13 PM |
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june262004
But I love the Snow!
Member since 5/05 15379 total posts
Name:
Kristin
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Re: For those who took out a HELOC or are considering it
Posted by ODonnell
We just took out a HELOC for an extention starting in October (hopefully) Check out BFCU, they have the best rate that is fixed for 6 months at 5.49%. After the 6 months it goes to prime + 1/4%. We are hoping to do a complete new refinance in a year anyway to bring our mortgage down to a 15-year, so that option was great for us.
But with BFCU there is a minumum disbursment!
assumes a minimum disbursement at closing ($30,000 for loans up to $100,000; $40,000 for loans over $100,000), and a minimum outstanding balance of $25,000 for 6 months from date of closing
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| Posted 8/16/06 12:13 PM |
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june262004
But I love the Snow!
Member since 5/05 15379 total posts
Name:
Kristin
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Re: For those who took out a HELOC or are considering it
Posted by Blu-ize
Posted by june262004
I took our a heloc with wamu Since I work for them
We got prime minus a .25% on the variable portion and then fixed half of it. (wamu has this product where you can fix a loan in your line) And by fixing it you lock in your interest rate and also pay principal and interest.
Im not a huge fan of loans only because you get it in one lump sum and pay back the entire thing. I just want to pay on what I use!
I agree about the HE loan. Chase has offered prime - .5. I can take a 3 year lock and pay 7.8% (right now), 5 year lock 7.9% and a 7 year lock for 8.1%. All current rates as of yesterday. They also have a program where I don't have to lock right now and if I the rate goes down I can lock it then. Also if the rates are ancipated to go up I can lock it before. There are so many loan prgrams out there, I'm still looking..it has to be the right loan ya know? It's just more debt but on the other hand it's going towards the house..
tuff stuff here..
Chase only allows you to lock ONCE....
Wamu allows you to unlock and lock as many times as you need!
Message edited 8/16/2006 12:17:12 PM.
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| Posted 8/16/06 12:14 PM |
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june262004
But I love the Snow!
Member since 5/05 15379 total posts
Name:
Kristin
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Re: For those who took out a HELOC or are considering it
Message edited 8/16/2006 12:16:46 PM.
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| Posted 8/16/06 12:16 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: For those who took out a HELOC or are considering it
Posted by june262004
Posted by Blu-ize
Posted by june262004
I took our a heloc with wamu Since I work for them
We got prime minus a .25% on the variable portion and then fixed half of it. (wamu has this product where you can fix a loan in your line) And by fixing it you lock in your interest rate and also pay principal and interest.
Im not a huge fan of loans only because you get it in one lump sum and pay back the entire thing. I just want to pay on what I use!
I agree about the HE loan. Chase has offered prime - .5. I can take a 3 year lock and pay 7.8% (right now), 5 year lock 7.9% and a 7 year lock for 8.1%. All current rates as of yesterday. They also have a program where I don't have to lock right now and if I the rate goes down I can lock it then. Also if the rates are ancipated to go up I can lock it before. There are so many loan prgrams out there, I'm still looking..it has to be the right loan ya know? It's just more debt but on the other hand it's going towards the house..
tuff stuff here..
Chase only allows you to lock ONCE....
Wamu allows you to unlock and lock as many times as you need!
what are the closing fees?
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| Posted 8/16/06 12:21 PM |
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june262004
But I love the Snow!
Member since 5/05 15379 total posts
Name:
Kristin
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Re: For those who took out a HELOC or are considering it
Also with chase if your line is less then 500,000 they charge you 399 orgination fee for their "best rate line of credit"
And for the no closing fee lines of credit... They charge you 50.00 a year
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| Posted 8/16/06 12:21 PM |
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june262004
But I love the Snow!
Member since 5/05 15379 total posts
Name:
Kristin
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Re: For those who took out a HELOC or are considering it
Posted by Blu-ize
Posted by june262004
Posted by Blu-ize
Posted by june262004
I took our a heloc with wamu Since I work for them
We got prime minus a .25% on the variable portion and then fixed half of it. (wamu has this product where you can fix a loan in your line) And by fixing it you lock in your interest rate and also pay principal and interest.
Im not a huge fan of loans only because you get it in one lump sum and pay back the entire thing. I just want to pay on what I use!
I agree about the HE loan. Chase has offered prime - .5. I can take a 3 year lock and pay 7.8% (right now), 5 year lock 7.9% and a 7 year lock for 8.1%. All current rates as of yesterday. They also have a program where I don't have to lock right now and if I the rate goes down I can lock it then. Also if the rates are ancipated to go up I can lock it before. There are so many loan prgrams out there, I'm still looking..it has to be the right loan ya know? It's just more debt but on the other hand it's going towards the house..
tuff stuff here..
Chase only allows you to lock ONCE....
Wamu allows you to unlock and lock as many times as you need!
what are the closing fees?
there are none. They are lendor paid!
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| Posted 8/16/06 12:22 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: For those who took out a HELOC or are considering it
Posted by june262004
Also with chase if your line is less then 500,000 they charge you 399 orgination fee for their "best rate line of credit"
And for the no closing fee lines of credit... They charge you 50.00 a year
no, that's not what was given to me in writing. There are no fees, all waived.
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| Posted 8/16/06 12:24 PM |
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ODonnell
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Member since 9/05 5983 total posts
Name:
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Re: For those who took out a HELOC or are considering it
Posted by june262004
Posted by ODonnell
We just took out a HELOC for an extention starting in October (hopefully) Check out BFCU, they have the best rate that is fixed for 6 months at 5.49%. After the 6 months it goes to prime + 1/4%. We are hoping to do a complete new refinance in a year anyway to bring our mortgage down to a 15-year, so that option was great for us.
But with BFCU there is a minumum disbursment!
assumes a minimum disbursement at closing ($30,000 for loans up to $100,000; $40,000 for loans over $100,000), and a minimum outstanding balance of $25,000 for 6 months from date of closing
All those terms are correct, so it suited us perfectly. We also turned around and put the amount we had to withdraw at closing in a CD (they also offered the best rates on the CD than any other bank), so it's earning us interest while we wait for the construction to start. A kind of creative financing and completely above board 
I also confirmed with BFCU that we can close out the HELOC at anytime once we are doing it through a refinance with them.
On HEs they currently offer a 5 year fixed rate at 6.49%.
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| Posted 8/16/06 12:25 PM |
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june262004
But I love the Snow!
Member since 5/05 15379 total posts
Name:
Kristin
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Re: For those who took out a HELOC or are considering it
Posted by Blu-ize
Posted by june262004
Also with chase if your line is less then 500,000 they charge you 399 orgination fee for their "best rate line of credit"
And for the no closing fee lines of credit... They charge you 50.00 a year
no, that's not what was given to me in writing. There are no fees, all waived.
I actually looked it up just now on the chase website....
If your credit line is equal to or less than $500,000, you will pay an Origination Fee of $399
Borrower is responsible for a $50 annual fee after the first year
If you have it in writting then thats cool
but you can still only lock it once 
Message edited 8/16/2006 12:41:03 PM.
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| Posted 8/16/06 12:40 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: For those who took out a HELOC or are considering it
Posted by june262004
Posted by Blu-ize
Posted by june262004
Also with chase if your line is less then 500,000 they charge you 399 orgination fee for their "best rate line of credit"
And for the no closing fee lines of credit... They charge you 50.00 a year
no, that's not what was given to me in writing. There are no fees, all waived.
I actually looked it up just now on the chase website....
If your credit line is equal to or less than $500,000, you will pay an Origination Fee of $399
Borrower is responsible for a $50 annual fee after the first year
If you have it in writting then thats cool
but you can still only lock it once
I should mention that I have a banking and employment relationship with Chase so I may be getting some things that others may not.
I don't anticipate rates going down anytime soon though. It's a tough call, lower interest for the first 5 years.
We are still shopping, thanks for the info..I'll send you an FM for some more details as we need it if you don't mind.
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| Posted 8/16/06 12:45 PM |
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june262004
But I love the Snow!
Member since 5/05 15379 total posts
Name:
Kristin
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Re: For those who took out a HELOC or are considering it
Posted by Blu-ize
Posted by june262004
Posted by Blu-ize
Posted by june262004
Also with chase if your line is less then 500,000 they charge you 399 orgination fee for their "best rate line of credit"
And for the no closing fee lines of credit... They charge you 50.00 a year
no, that's not what was given to me in writing. There are no fees, all waived.
I actually looked it up just now on the chase website....
If your credit line is equal to or less than $500,000, you will pay an Origination Fee of $399
Borrower is responsible for a $50 annual fee after the first year
If you have it in writting then thats cool
but you can still only lock it once
I should mention that I have a banking and employment relationship with Chase so I may be getting some things that others may not.
I don't anticipate rates going down anytime soon though. It's a tough call, lower interest for the first 5 years.
We are still shopping, thanks for the info..I'll send you an FM for some more details as we need it if you don't mind.
No problem ask away if you have questions. Also keep in mind that our rates for fixing as of right now can be as low as 8.04 LESS then what prime is!
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| Posted 8/16/06 12:51 PM |
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MommaG
Yay Spring!
Member since 5/05 5133 total posts
Name:
Gloria
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Re: For those who took out a HELOC or are considering it
We are building an addition to our house (also starting in October). We crunched the numbers and just ended up refinancing the whole mortgage to a 20 year. It worked out best for us. We also went with BFCU.
By the way, their HE loan is 7.39% fixed.
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| Posted 8/16/06 8:11 PM |
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