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May 5, 2008
home equity line of credit/loans
Hello,
We were thinking of doing some renovations and pay off CC debt. we wanted to get a 100K home equity LOC or a loan. With all the crap press on banks and lenders not as willing to dole out money - do you think we will face a lot of resistance?
I have good credit, just not sure what the rates are on loans these days
is anyone else doing this now or are many of you waiting the storm out?
Comments
i got a heloc in february without any problem. rates are good right now. shop around and check out bankrate.com.
Posted by: z at May 5, 2008 1:07 PM
If you have the equity and proper credit, you should be able to borrow at prime - 1/4% or even prime - 1/2%. 100k translates to a $375-$395 per month on an interest only HELOC. Not bad. Just make sure you can withstand some large increases down the road when the rates move up again. Also, now would be a good time to pay down the HELOC (rather than just paying interest) with some extra funds.
Posted by: guest at May 5, 2008 1:57 PM
FYI a HELOC can subtract 50 points or more from your credit rating. It does not get classified as a mortgage on your report.
Posted by: guest at May 5, 2008 7:56 PM
I've been in the same situation, been "accepted" for about three months, and they keep finding one thing that they need in order to process. Now that we've finally fixed on 15 year payment plan and signed some paper they're still going to make us wait another 4 weeks. Dont think it'll happen over night because even the people with good credit are having to wait. and we only wanted 50k.
Posted by: guest at May 6, 2008 10:55 AM
You may want to consider getting a renovation loan that would give you better terms and rate.
Rates can range anywhere from 6.5 to 7.875 precent.
www.myrenovationfinancing.com
Posted by: guest at May 7, 2008 9:18 PM
We did it through our bank (Citibank) and got a rate of prime - 1/4%, very easy process. Paid off all credit cards and have $ for reno if needed. I should note we both have excellent credit.
Posted by: guest at May 8, 2008 11:22 PM
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