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HELOC for 0% LTV

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I was taking a glance around at HELOC options and most seem to offer interest rates based on the amount borrowed and your LTV ratio. Are there any that offer these for LTV's down to 0%? I'm in the process of paying off my loan entirely and while I don't anticipate a need for it (emergency cash balance and ability to borrow against my investment accounts), it would be good to know if there are options for people in this situation.

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0% LTV is the same as free and clear. The rate for 0% LTV is the same as the lowest LTV rate they advertise

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rufflesinc said:   0% LTV is the same as free and clear. The rate for 0% LTV is the same as the lowest LTV rate they advertise
Thanks. Yeah that's my understanding too. I was hoping there might be lenders who cater to lower (than normal) LTV's and can offer more advantageous rates.

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ankitgu said:   
rufflesinc said:   0% LTV is the same as free and clear. The rate for 0% LTV is the same as the lowest LTV rate they advertise
Thanks. Yeah that's my understanding too. I was hoping there might be lenders who cater to lower (than normal) LTV's and can offer more advantageous rates.

  as usual, the answer would be a small local bank or credit union

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They're always going to have some % calculated as part of LTV because they typically assume maximum drawdown for HELOCs. So if you have no mortgage and you're looking to get a HELOC on 50% of the equity of your home, the LTV will be 50%.

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Get a life and do this when you actually need it for something. Hate fwfers who set this stuff up just in case. If you have this much time, go earn some money.

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lifetic said:   Get a life and do this when you actually need it for something. Hate fwfers who set this stuff up just in case. If you have this much time, go earn some money.

It's actually a smart strategy to get it ahead of time.  Hypothetically if you lose your job or maybe there's a fire to your house and you need the cash, you'll find it very difficult to get cheap financing.

That being said, "get a life" but created a new user name just to criticize OP?  

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At 0% LTV, pretty much any offer is available to you. Usually lenders will extend HELOC offers for LTVs up to a certain value which may depend on the market and property value too. Typically, below 50% LTV, you won't see much improvement in rate so you probably could setup a HELOC that maxes out at 50% LTV and shop around for which bank has the best rate.

And yes, it's better to get it setup ahead of time if you anticipate needing money and do not have much of an emergency fund otherwise. If you get divorced or unemployed for extended period, your eligibility for opening new lines of credit at the best rates will be gone. So if it's not too expensive in setup costs, HELOC cushion makes a lot of sense.

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For LTV below 50% many banks may not require a full appraisal which can save you some additional money if the lender you chose weren't covering closing cost.

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Some HELOC lenders will not do 1st position loans at time of closing. It is mostly due to being in a situation to have to track the property more closely and some sort of risk percentage assigned as such.

Rasheed

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