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HELOC options in Louisiana?
Posted on 2/28/24 at 3:05 pm
Posted on 2/28/24 at 3:05 pm
Looking for advice on HELOC?
Looking to consolidate around $52,000 of debt. Have about $120K in equity in home. Would you guys go the HELOC route and who is offering the top rates? Thanks in advance.
Looking to consolidate around $52,000 of debt. Have about $120K in equity in home. Would you guys go the HELOC route and who is offering the top rates? Thanks in advance.
4
Posted on 2/28/24 at 3:13 pm to basiletiger
Few things from a banker:
-A HELOC is a floating rate line of credit that is secured with your home (secured). Some banks might offer a teaser rate, but that rate will go up and will be variable.
-If you truly want a home equity option (would not be my 1st or 2nd option) you probably want a Home equity loan, which gives you a fixed rate vs a floating rate (HELOC).
-You did not disclose what the $52k in debt was, so assuming it is cc debt then that is debt is probably unsecured. I would explore other options than securing a new loan with your home as collateral
-A HELOC is a floating rate line of credit that is secured with your home (secured). Some banks might offer a teaser rate, but that rate will go up and will be variable.
-If you truly want a home equity option (would not be my 1st or 2nd option) you probably want a Home equity loan, which gives you a fixed rate vs a floating rate (HELOC).
-You did not disclose what the $52k in debt was, so assuming it is cc debt then that is debt is probably unsecured. I would explore other options than securing a new loan with your home as collateral
Posted on 2/28/24 at 3:47 pm to basiletiger
The benefit of a HELOC is that you can re-use the available credit after you pay the balance down.
Outside of that benefit, the earlier response about a fixed rate second is worthy of consideration.
Is your goal to reduce interest rates?
Open up monthly cash flow?
Both?
All of that goes into consideration when reviewing your options.
Unlike the other response, I'm not afraid of securing debt against the home. It generally permits you to lower the interest rate AND free up monthly cash flow.
If you were planning on paying back the credit cards and installments, then I'm sure you will pay back the 2nd lien (with more favorable terms).
As for who can offer options.
1) call your first mortgage company and ask them. They already have 1st lien position and may be able to do a no close HELOC.
2) call your local bank and a local credit union. Credit unions are typically really good at savings accounts. Or really good at loans. Rarely both at the same time. So avoid calling the credit unions with the highest savings account interest rates.
3) call a mortgage company (Rocket Mortgage. US Bank. Lending Tree).
It has been a long time since I looked. But local banks/credit unions used to have the best terms for a 2nd mortgage.
A mortgage compay/broker would be the next option if approval at the local bank level doesn't happen (terms are great, but they are also conservative in risk).
Outside of that benefit, the earlier response about a fixed rate second is worthy of consideration.
Is your goal to reduce interest rates?
Open up monthly cash flow?
Both?
All of that goes into consideration when reviewing your options.
Unlike the other response, I'm not afraid of securing debt against the home. It generally permits you to lower the interest rate AND free up monthly cash flow.
If you were planning on paying back the credit cards and installments, then I'm sure you will pay back the 2nd lien (with more favorable terms).
As for who can offer options.
1) call your first mortgage company and ask them. They already have 1st lien position and may be able to do a no close HELOC.
2) call your local bank and a local credit union. Credit unions are typically really good at savings accounts. Or really good at loans. Rarely both at the same time. So avoid calling the credit unions with the highest savings account interest rates.
3) call a mortgage company (Rocket Mortgage. US Bank. Lending Tree).
It has been a long time since I looked. But local banks/credit unions used to have the best terms for a 2nd mortgage.
A mortgage compay/broker would be the next option if approval at the local bank level doesn't happen (terms are great, but they are also conservative in risk).
Posted on 2/29/24 at 7:46 am to basiletiger
I have 250k heloc with Hancock Whitney. Got it in 2020, introductory rate was 5.9% for 6 months Or something like that. It’s currently sitting at 9%.
It’s good if you need fast cash with no questions asked. Pay it back quick, because 9% adds up quick.
It’s good if you need fast cash with no questions asked. Pay it back quick, because 9% adds up quick.
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