Home Equity Loan Lenders?

[Jim_in_Delaware]

I've learned that the members of this forum share a wealth of information, both boating and non-boating related.

We have dumped way to much of our cash, more than we originally planned into our retirement home. Thinking about taking out a 15 year home equity loan to free up some of that equity. Will probably want to make extra payments, starting in a year or two, to retire the loan a few years early. While I have a few lenders in mind, I am wondering about other good lenders who might have good rates. Any thoughts on potential lenders?

Thanks,

Jim

 

[scokill]

I've learned that the members of this forum share a wealth of information, both boating and non-boating related.

We have dumped way to much of our cash, more than we originally planned into our retirement home. Thinking about taking out a 15 year home equity loan to free up some of that equity. Will probably want to make extra payments, starting in a year or two, to retire the loan a few years early. While I have a few lenders in mind, I am wondering about other good lenders who might have good rates. Any thoughts on potential lenders?

Thanks,

Jim

My brother is a broker here in TX but it doesn't matter who. It's about rate and fees. They will slide along a scale, little higher rate less fees, little lower rate more fees. Not ideal timing as rates are up about 2.5 points over the last 12 months. Know your credit score and shop around without credit checks.

 

[Jim_in_Delaware]

My brother is a broker here in TX but it doesn't matter who. It's about rate and fees. They will slide along a scale, little higher rate less fees, little lower rate more fees. Not ideal timing as rates are up about 2.5 points over the last 12 months. Know your credit score and shop around without credit checks.

I've been closely watching rates as we were under contract for our new home build for more than 12 months. I believe that rates were about 2.75% when we went under contract and were 4.125% when we closed in March. Fast forward a couple of months and rates are up another 2% or so. Glad there were no more construction delays!

Is there a key to shopping around without credit checks?

Jim

 

[TimW451]

I've been closely watching rates as we were under contract for our new home build for more than 12 months. I believe that rates were about 2.75% when we went under contract and were 4.125% when we closed in March. Fast forward a couple of months and rates are up another 2% or so. Glad there were no more construction delays!

Is there a key to shopping around without credit checks?

Jim

There are “soft” and “hard” credit checks. The hard ones hit your credit report, the soft ones do not. There is no reason for a lender to do a hard check until you’re at the point of doing paperwork. I would explicitly ask to make sure any potential lender is only doing a soft credit check while you are shopping around.

Make sure you know rates and fees, as @scokill said, one is meaningless without the other.

I’ve been hitting Ally.com to see where rates are. I would probably go through them or my credit union unless I found a great deal elsewhere.

 

[Bottom Bracket]

Don't do it, and start making an extra principle payment yearly, now.

 

[HangOutdoors]

I've learned that the members of this forum share a wealth of information, both boating and non-boating related.

We have dumped way to much of our cash, more than we originally planned into our retirement home. Thinking about taking out a 15 year home equity loan to free up some of that equity. Will probably want to make extra payments, starting in a year or two, to retire the loan a few years early. While I have a few lenders in mind, I am wondering about other good lenders who might have good rates. Any thoughts on potential lenders?

Thanks,

Jim

Perhaps consider an interest only HELOC, that way you can use what you need and just double up, etc, payments. Then leave it on the home for emergency use. HELOC's (Home Equity Line of Credit) are typically tied to different rates and paper. Some may be Prime or Prime+, some Libor, some have fixed rates for 1-3 years, others turn to fixed rate at 10yrs. What is nice about the HELOC's, is that they are typically faster to write and lenders get creative in how to make them attractive but tying them to different things and creating nicer loans. I keep $100,000 open on our house. Don't use it, but know I can get at it quick if I need to (Not for Boat Purchasing, Mods, I have been told!!!) For instance I can transfer out of mine right to my checking account and it will be there instantly.

With a HELOC they will typically do a soft pull (credit check) If you are going for a 2nd Mortgage, etc. Then they will usually do a hard pull every place you check with. I recommend Credit Unions as they have great customer service and bend over backwards to earn your business. They also have some of the better loan products.

 

[Jim_in_Delaware]

Folks, thanks for your thoughts.

The thread is from last year, so here is an update of what we did.

We did get a home equity loan about two weeks after I first posted this thread. Got the home equity loan from the same local lender who handled our primary loan. The first mortgage (March 2022) was a fixed 30 year loan at 4.125%. The home equity load (August 2022) was a fixed loan at 6.5%. As it was the same lender as our first mortgage (and our construction loan before that) there was no points, origination fees, and a new appraisal was not needed.

Jim

 

[HangOutdoors]

ROFL...... I need to look at dates in the threads....... Or get off the computer and get out on the boat a bit more

 

[kgower]

Folks, thanks for your thoughts.

The thread is from last year, so here is an update of what we did.

We did get a home equity loan about two weeks after I first posted this thread. Got the home equity loan from the same local lender who handled our primary loan. The first mortgage (March 2022) was a fixed 30 year loan at 4.125%. The home equity load (August 2022) was a fixed loan at 6.5%. As it was the same lender as our first mortgage (and our construction loan before that) there was no points, origination fees, and a new appraisal was not needed.

Jim

That sounds more like a fixed rate second trust than a HELOC.