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
Message edited by: SUCKISSTAPLES on 2007-04-26 05:29:38 CDT
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Please try to organize by lowest rates. Current prime rate 3.25%
1. Third Federal Savings & Loan (to make Turtlebug happy) 9-30-09 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
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.
Message edited by: jerseyjohn on 02/06/2003 10:23:18
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.
#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).
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.
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.
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.
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?
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.
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
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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.
