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rated:
This thread's purpose is to consolidate discussion of all HELOCS and list current best rates and fees.

DEFINITION OF HELOCS- FW Member DaveHanson has posted an excellent definition of HELOCs, and how they differ from HELs, in the first post of this thread

As Deepgreenbank is now dead, I ask users to update the QUICKSUMMARY with the best current HELOC deals (especially since HELOC rates have gone up)

WHY GET A HELOC EVEN IF YOU DONT NEED ONE!
HELOCs have many advantages, even if left "untapped" and NEVER USED! some of these advantages are discussed in this thread:
Advantages of HELOCs


AND NOW FOR THE BEST HELOC DEALS (not in particular order)
see QUICKSUMMARY

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Member Summary
Most Recent Posts
I'm trying to work with DCU now. Response time is less than stellar so far. If they don't get back to me by the end of t... (more)

mrkhamkhao (Aug. 19, 2014 @ 11:07a) |

Update on Penfed HELOC

Got approved and hopefully will be closing soon for their 5/5. All closing costs paid by Penfed. 7... (more)

muskan123 (Sep. 07, 2014 @ 10:26p) |

Any NOO options with decent rates for HEL or HELOCs anywhere?

fattywallace (Sep. 09, 2014 @ 7:51p) |

Please try to organize by lowest rates. Current prime rate 3.25%


1. Hanscom Federal Credit Union Rate is 2.75% (0.5% below Prime) for 75% LTV and 3.25% for 80% LTV. They do a free appraisal if they cannot get the value of the home in the Home Value Estimator (drive by for less than 250K in loan value, more detailed for loans more than 250K). They offer a no closing cost HELOC with the option to lock to a fixed rate [MAY need to pay $200-300 recording fee, but in IL at least absolutely no fees]. BUT: They don't lend to Texas!
[One member had an isolated "BAD EXPERIENCE". Another found them very responsive and easy to deal with.]

1.5 Tower Federal Credit Union Rate is 2.75% and NO closing costs or fees. With a rate of (prime -.50%), a home equity line of credit gives you a credit line from $5,000 to $312,700 when the credit limit does not exceed 80% of the equity in your home. A credit line greater than 80% of your home's equity is available up to $250,000 at a rate of (prime + 1%). NOTE: They don't lend to Texas either.

2. Delta Community Credit Union
08/27/12 No rate info on HELOCs. Rate is 3% for 80% LTV (0.25% under prime) and 3.5% for 90% LTV (0.25% over prime. They do not have a no closing cost HELOC but the closing costs are around $100 (if they do not need an appraisal). Will not do HELOC in Texas.

3. Secny FCU Indicates promotional rate of 1.99%. No info on term or regular rate.
01/21/10 Indicates promotional rate of 1.99%. No info on term or regular rate.
2.99% for first yr. then adjusts to prime minus 0. Can borrow between 10-150k.Confirmed by phone 2/17/10
80% max LTV, no closing cost, but must keep for 3yrs. minimum, otherwise must pay closing costs.

4. Agriculture FCU Prime minus 0%. No point no fee. However, their underwriting tends to make their own rules as they go on - Beware

5. Pentagon Federal Credit Union - Prime minus 0%. No point no fee. There is a minimum rate floor of 3.75% APR and a maximum rate of 18% APR. You have to pay for an appraisal. Their current rate is 3.75% and their underwriting sucks.

6. NEW - Sandy Spring Bank - Intro rate of 2.75 fixed for first 12 months, prime minus 0.50% subject to 3.25% floor after the intro period on lines of credit of $125,000 or higher, up to 85% LTV. All closing costs paid including full appraisal; must be repaid if closed within three years. Very smooth underwriting process and great customer service. Based on terms posted here, eligible properties must be in "certain counties in Maryland and Virginia," so you basically have to be in their market area to qualify.


No longer attractive - with reason:


1. Third Federal Savings & Loan (to make Turtlebug happy) 01-21-10
Rate changed to 3.99%, prime 0.74%. Also, rates are eligible in very few states now

Prime -.26 (2.99%) on Balances of $50,000 and over
Prime -0% (3.25%) on Balances under $50,000

Third Federal lends in Alabama, Colorado, Connecticut, Florida, Illinois, Iowa, Massachusetts, Minnesota, Missouri, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, Tennesse, Virgina, Washington, Wisconson, and in Kentucky, the three counties of Boone, Campbell, Kenton.

NO Application Fee
NO Closing Cost
NO Doc/Stamp Tax
NO Origination Fee
NO Annual Fee
NO Pre-Payment Penalty
$200 gift card to Home Depot for opening or/and $225 cash (YMMV expires currently 02/28/08)
Guaranteed to be lowest available anywhere or they pay you $500.
Discussion thread is here TFSL Thread

2. Alliant 9-30-09
Rate changed to 4.00%, prime 0.75%.

3. DCU [Minimum Rate 4.00% APR kills the deal]

4. Navy FCU 3.99% minimum APR kills the deal

5. [L= Spencer Savings Bank Heloc at Prime -1.5%] 3.75% minimum APR kills the deal


6. Compass Bank Prime plus 2.30%

These rates are only available in Alabama, Arizona, Colorado, Florida, New Mexico and Texas.

7. HSBC Prime plus 0.74%

8. Citibank - Prime plus 1.54%

9. CHARTER ONE - 3.99

10. CITIZEN'S ADVANTAGE Page cannot be displayed. i get the same thing with www.citizensadvantage.com. Is this bank still in business??

11. Deepgreenbank.com - Went out of business.


12. Sovereign Bank - 3.99%
http://www.sovereignbank.com/retail/loans/


13. Wachovia - 4.90%
http://www.wachovia.com/personal/page/1,,325_493_597,00.html


14. Nexity Bank prime plus 2%[/L]

rated:
First Union / Wachovia offers prime rate HELOCs with no processing fee and prime rate - 0.5% HELOCs with a processing fee of about $100 for HELOCS $100K or above with a LTV of up to 90%. Smaller lines have higher rates. I also have a free no minimum balance checking account at First Union that is devoid of fees because I have the HELOC. I don't know if First Union still gives the free checking accounts out, it was a special offer when I signed up at a branch near me.

rated:
Thank-you to SIS for getting this needed thread going! You have been going the extra mile lately making FW finance an even more useful place, and I'm sure I'm not alone in appreciating it.

#5, PFCU, didn't have a regular thread dedicated to them. A few details: Prime for life, with a 2.9% fixed(!) intro rate for one year. 15 year draw period. No fees. They do verify income, and need decent but not superb credit (no cutoff score). You do pay for conventional appraisal if required--usually they can do automated appraisals, and you'd only want to do this if you want to challenge their number. Their website layout can be a little confusing, but terms here are pretty clear:

<< $5,000 to $100,000 for owner occupied equity lines up to 90% of fair market value (FMV); $5,000 to $50,000 for owner occupied equity lines 90.01% or greater of FMV. APR is 1% higher for lines of credit over 90% FMV. 2.9 % fixed APR for the first year, Prime plus 0% APR variable after that. Maximum APR is 18%. Introductory rate is for new lines of credit only. As long as you have available credit, you can draw on your line of credit at anytime during the 15-year term. Minimum payment may not repay principal which will result in balloon payment. >>

To join, you need to have a connection to the military or join a military support group (I qualified easily this way.)

I think that for many, the combination of no fees, a 15-year draw, 90% LTV, and a fixed 2.9% intro rate makes this the most compelling product out there. Their customer service is 24/7, and seems light years beyond someplace like DeepGreen. Sooner or later I will try them out, and report back. They are one of the only options out there for NON-owner occupied HELOCs.


Sovereign Bank will do prime minus .51%, last I checked, if 80% LTV or better. They require an appraisal if needed to support the amount of cash you want. Don't know too many details on this one.

rated:
Can you make the link clickable? it will be convenient. thanks

rated:
i will once i take the time to read about hyperlinking...the FAQ is a work in progress

rated:
DaveHanson said:

<<

#5, PFCU, didn't have a regular thread dedicated to them. A few details: Prime for life, with a 2.9% fixed(!) intro rate for one year. 15 year draw period. No fees. They do verify income, and need decent but not superb credit (no cutoff score). You do pay for conventional appraisal if required--usually they can do automated appraisals, and you'd only want to do this if you want to challenge their number. Their website layout can be a little confusing, but terms here are pretty clear:

<< $5,000 to $100,000 for owner occupied equity lines up to 90% of fair market value (FMV); $5,000 to $50,000 for owner occupied equity lines 90.01% or greater of FMV. APR is 1% higher for lines of credit over 90% FMV. 2.9 % fixed APR for the first year, Prime plus 0% APR variable after that. Maximum APR is 18%. Introductory rate is for new lines of credit only. As long as you have available credit, you can draw on your line of credit at anytime during the 15-year term. Minimum payment may not repay principal which will result in balloon payment. >>

To join, you need to have a connection to the military or join a military support group (I qualified easily this way.)

I think that for many, the combination of no fees, a 15-year draw, 90% LTV, and a fixed 2.9% intro rate makes this the most compelling product out there. Their customer service is 24/7, and seems light years beyond someplace like DeepGreen. Sooner or later I will try them out, and report back. They are one of the only options out there for NON-owner occupied HELOCs.


Sovereign Bank will do prime minus .51%, last I checked, if 80% LTV or better. They require an appraisal if needed to support the amount of cash you want. Don't know too many details on this one.
>>



Do you know if you have to renew the membership in the support group each year to
stay a member of pfcu? Also the site shows the rate as 4.75%, but I thought prime
was 4.25? (looks like they put 4.25 in the smaller print... hmmm).

rated:
Charter One Bank charterone.com
Home Equity Lines of Credit (HELOC)

89.99% LTV HELOC


Intro Rate 1.99% APR* for 4 Months

--------------------------------------------------------------------------------

Rate 4% (Prime minus 0.25% for life of line)
Requires $10,000 draw at closing, maximum APR of 16%.

--------------------------------------------------------------------------------

Terms 5-year draw period with interest only monthly payments. Balloon payment at maturity. No $100 annual fee for first 24 months and waived for each following year if the average outstanding balance for the immediately preceding 12 months is 20% or more of the current committed amount. Property insurance and flood insurance, if applicable, are required. New customers only. Offer is subject to change. Consult a tax advisor regarding deductibility of interest.

--------------------------------------------------------------------------------

Closing Cost No Closing Costs

--------------------------------------------------------------------------------

Additional Information Owner occupied, 1-4 family residences only. Minimum line $5,000. Maximum line $500,000.

--------------------------------------------------------------------------------

Non-Draw Pricing Option Without $10,000 draw at closing, pricing is based on line size as follows:

$5,000 - $24,999 5.00% (Prime + 0.75%)
$25,000 - $49,999 4.75% (Prime + 0.50%)
$50,000 + 4.25% (Prime + 0.00%)





99.99% LTV HELOC


Intro Rate 1.99% APR* for 4 Months

--------------------------------------------------------------------------------

Rate 6% (Prime + 1.75% for life of line)
Maximum APR of 16%

--------------------------------------------------------------------------------

Terms 5-year draw period with interest only monthly payments. Balloon payment at maturity. No $125 annual fee for first 12 months and waived for each following year if the average outstanding balance for the immediately preceding 12 months is 40% or more of the current committed amount. Property insurance and flood insurance, if applicable, are required. Offer is subject to change. Consult a tax advisor regarding deductibility of interest.

--------------------------------------------------------------------------------

Closing Cost No Closing Costs

--------------------------------------------------------------------------------

Additional Information Owner occupied, 1-4 family residences only. Minimum line $5,000. Maximum line $100,000.


--------------------------------------------------------------------------------


All rates as of 2/4/2003.
Prime 4.25 % as of 11/12/2002.
*The annual percentage rate (APR) may vary

rated:
dbird, you don't...once you're in PFCU, you are in for life.

rated:
bump for this useful thread, and an update: PFCU now does HELOCs to $200K

rated:
DaveHanson,

Can you post the name and details (ie, cost) of the org you joined in order to get access to Pentagon Federal?

Thanks.

fitzkorn

rated:
can you get heloc then refi.? or refi then get heloc?
right now i'm at 7.25% so i want to refinance
TIA

rated:
Bump for great post and possible updates

rated:
Was searching for the peoples bank cc website and found this site during the search. Looks like it's only for Connecticut residents.Peoples Bank Equity Credit Line


Lines above 50,000 qualify for prime - 1.00%. Here are some of the terms:

* Offer available for Connecticut homeowners only. The Annual Percentage Rate ("APR" is variable each month and will be established based on an Index equal to the Prime Rate as published in the Northeastern edition of The Wall Street Journal on the last business day before the start of each month's billing cycle. For approved line amounts of $50,000 or more your APR will be equal to the Index minus one percentage point (1.00%) and the APR as of 3/3/2003 is 3.25%. For approved line amounts less than $50,000, you may also qualify for this rate if your balance in use is $25,000 or more. If your approved line is less than $50,000 and your balance in use is less than $25,000 your APR will be equal to the Index plus one percentage point (1.00%) and the APR for these balances as of 3/3/2003 is 5.25%. The maximum APR is 17%. The minimum APR is 3%. Rates effective 3/3/2003 and are subject to change without notice.

Equity Credit Lines are available only for 1-4 family owner-occupied properties and approved condominiums located in Connecticut and are not available on cooperatives. This Equity Credit Line has a minimum line amount of $10,000 and a maximum line amount of $500,000. The allowable equity limits are as follows. For line requests of $10,000-$250,000 you can borrow up to 80% of the equity in your home (70% for 2-4 family homes and 65% for condominiums) less your current mortgage. For line requests of $250,001-$500,000 you can borrow up to 70% of the equity in your home (60% for 2-4 family homes and condominiums) less your current mortgage. Line requests that are over the allowable equity limit may be approved at People's discretion but will require the purchase of mortgage insurance. Property insurance is required and flood insurance may be required.

There is a $50 annual fee associated with this account, which is waived for Advantage Plus and Investor Plus account holders for the first year only. If you close your account within two years after the date of your closing, you must pay a prepayment fee of 1% of the approved line. Existing People's Equity Credit Line customers are not eligible for this offer. Other terms and conditions apply and other equity credit line programs are available.

rated:
Suckisstaples,
Ive been meaning to ask you this for a long time. Where do you get your name?

rated:
Maximus330I said:

<< Suckisstaples,
Ive been meaning to ask you this for a long time. Where do you get your name?
>>




Look at this thread.

rated:
Haha, thats classic! Thanks Sueyko.

rated:
What about the tax aspect of HELOC? DeepGreen says that the interest is tax deductible in most cases. It then points readers to consult with their tax advisors.

My understanding is simply that: if you itemize, you get to deduct it. Is this correct?

rated:
You can deduct the interest in up to $500,000 in HEL/HELOC debt used for home improvements, $100,000 for any reason at all. So if your home debt after your original mortgage falls under these limits, all the interest is deductible--but only if you itemize.

rated:
And if you use the HELOC for investment property, you may be able to deduct it as mortgage interest on the investment property section of your taxes, INSTEAD of having to itemize your deductions to claim mortgage interest deductions on your home...of course, consult a professional

rated:
Hi,

Is there a payoff early penalty for the home equity line of credit at Pentagon Federal credit uinion?

Can you apply now and use the entire loan amount at Fed/2004?
Thanks.

rated:
PLEASE DELETE THIS

rated:
Actually SIS, according to Earnst and Young, IRS has ruled the interest on your primary residence ONLY must be treated ONLY as a potentially itemizable mortgage deduction, strange as this might sound. If someone doesn't beat me to it I'll try to dig up the reference later.

rated:
Really? even if you used the "primary residence" equity loan to payoff the loans on the investment properties?

And if "primary residence" loans can only be itemized, and not claimed as rental/investment property interest, wouldnt a simple solution be to change one's "primary residence"?

rated:
Okay I want to understand this before applying at Penfed.

We rarely itemize deductions and are considering taking out the HELOC on either our residence or on a condo we are selling to our daughter on a contract for deed. So if we want to offset the interest she pays us with the interest we pay on a HELOC draw, the HELOC must be taken out on the condo rather than our primary residence.

At least Penfed does HELOC on non owner occupied properties and a great introductory rate. After questioning them last night there seems to be no hidden fees besides joining that military organization which is a one time $20 fee for a continuing membership in the Penfed Credit Union.

She said it takes about a month to get the HELOC set up.

rated:
Does anyone know if I have to pay the mortgage recording tax in NYC for taking out a HELOC?

rated:
digimon said:

<< Does anyone know if I have to pay the mortgage recording tax in NYC for taking out a HELOC? >>



from what others in NY have posted, yes you do

rated:
I just called Penfed & put in my application for a HELOC. It was quick and painless and they said they'd have the approval (or denial) within 72 hours. I'll let you know how the process goes...

rated:
The mortgage recording tax kind of kills the idea of having a line of credit.
I don't need the money yet but I still have to pay up front. That sucks. I wonder what is the percentage.

rated:
Digimon: Eleven states have it at varying rates per $100 of credit line asked for. You can call your county recorder's office to find out or just ask the mortgage provider. NY state was the highest recording rate according to them.

rated:
digimon said:

<< The mortgage recording tax kind of kills the idea of having a line of credit.
I don't need the money yet but I still have to pay up front. That sucks. I wonder what is the percentage.
>>




suffolk county has a 1% recordation tax.

NYC I believe has a 1.75% recordation tax!!



Not positive on this but I've heard if you obtain the HELOC from your current mortgager you may not have to pay the recordation tax. Some of my co-workers are trying to refinance their homes and the closing costs they were quoted varied greatly as it appeared some banks were adding the recordation tax while others (namely the current mortgager) weren't adding the fee in.

rated:
Chgoman said:

<< I just called Penfed & put in my application for a HELOC. It was quick and painless and they said they'd have the approval (or denial) within 72 hours. I'll let you know how the process goes... >>



I applied for Penfed Heloc on 5/5 and got a call on 5/7 saying I was approved pending documentation. I received a request for docs on 5/14 and will send it off today.

The fees for a HELOC ($70k) is $273 (+$310 if you want a new appraisal).
Docs they need - W2 for previous year, pay statement , mortgage statement and you have to add Penfed to your insurance as a lien holder.

rated:
klipdrift,

I thought PenFed has no fees. Why do you have to pay the $273 and may be the appraisal>

rated:
digimon said:

<< klipdrift,

I thought PenFed has no fees. Why do you have to pay the $273 and may be the appraisal>
>>



My tax records did not support the amount of the HELOC I wanted (tax records being far lower than the actual current value) I have to support the value with an appraisal (refinanced recently and they will accept a copy of the recent appraisal).

The $273 fees are: $11 for credit report, $12 for flood determination, $100 abstract or title fee, $150 recording fee. (All estimates, will be determined at closing).

rated:
Sueyko,

Thanks for the info. I can see a tax being applied to mortgages. But for a HELOC, that is so unfair. For a hypothetical $100K, the tax would be $1750 and yet I may only draw much less than that from time to time. I don't mean to question your knowledge, but do you know anyone actually paid this tax for a HELOC (not a refinancing mortgage) in Suffolk or NYC?

rated:
Yes, I paid the 1% in suffolk county on my HELOC.

rated:
Sueyko,

Where did you get your HELOC? I am thinking Citizens Advantage.

rated:
DeepGreen Bank. At the time, it was .25 below prime w/ automatic withdrawal. Now, it is .05 below prime.

rated:
Sueyko,

DeepGreen could be the bank Citizens Advantage uses as a provider. How did they take out the mortgage recording tax? You mailed a check or they took it out from your credit line (so you would pay interest immediately)?

rated:
I took out a 139k loan. The 1% was taken out immediately and the funds were wired to my account minus the 1%.

Skipping 1372 Messages...
rated:
Any NOO options with decent rates for HEL or HELOCs anywhere?

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