Home › Forums › Financial Markets/Economics › Home Equity Loan for 2nd Mortgage
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fsbo.
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May 12, 2008 at 12:38 AM #202687May 12, 2008 at 9:34 PM #203107
fsbo
ParticipantThanks folks! The deal does sound too good to be ture. Its fine print seems more confusing. We contacted the lender today but haven’t heard back from them yet.
Here is the web link. I guess it got to be HELOC
http://www.usecu.org/home/loa.loa_helMay 12, 2008 at 9:34 PM #203155ParticipantThanks folks! The deal does sound too good to be ture. Its fine print seems more confusing. We contacted the lender today but haven’t heard back from them yet.
Here is the web link. I guess it got to be HELOC
http://www.usecu.org/home/loa.loa_helMay 12, 2008 at 9:34 PM #203182ParticipantThanks folks! The deal does sound too good to be ture. Its fine print seems more confusing. We contacted the lender today but haven’t heard back from them yet.
Here is the web link. I guess it got to be HELOC
http://www.usecu.org/home/loa.loa_helMay 12, 2008 at 9:34 PM #203206ParticipantThanks folks! The deal does sound too good to be ture. Its fine print seems more confusing. We contacted the lender today but haven’t heard back from them yet.
Here is the web link. I guess it got to be HELOC
http://www.usecu.org/home/loa.loa_helMay 12, 2008 at 9:34 PM #203239ParticipantThanks folks! The deal does sound too good to be ture. Its fine print seems more confusing. We contacted the lender today but haven’t heard back from them yet.
Here is the web link. I guess it got to be HELOC
http://www.usecu.org/home/loa.loa_helMay 12, 2008 at 9:44 PM #203121HLS
ParticipantFSBO,
Not only is it “too good to be true”
IT ISN’T TRUE….The fine print isn’t confusing to me.. it’s just the FINE PRINT
Based upon the current Prime Rate, your rate may be as low as 4.25%. Rate is based upon credit criteria. Your rate may be higher. Although your fully-indexed rate is subject to change monthly, the Prime Rate may change at any time. The maximum APR is 15.00%. The minimum APR is 3.50%
IF YOU QUALIFY, it’s prime minus .75% with a floor rate of 3.50% and a max rate of 15.00%
10 YR interest only & draw period, followed by a 15 YR (P&I)repayment period.
Sorry to burst your bubble, it’s NOT a fixed 25 YR 2nd at 4.50%, (Unless prime stays below 5.25%!)
It is a standard decent rate for a HELOC. Prime could be 10% in a few years, who knows. Do ya feel lucky ?
I recommend large HELOCS to people who need the loan and could pay them off with liquid assets if they had to, if the rates get silly. Up to $250,000 they are easier to get than over $250K.
It’s a gamble to take a large amount for the long term, but could still work out. Hindsight will tell.
Adjustable rates are normally in the house’s favor, and the borrower isn’t the house.
May 12, 2008 at 9:44 PM #203172ParticipantFSBO,
Not only is it “too good to be true”
IT ISN’T TRUE….The fine print isn’t confusing to me.. it’s just the FINE PRINT
Based upon the current Prime Rate, your rate may be as low as 4.25%. Rate is based upon credit criteria. Your rate may be higher. Although your fully-indexed rate is subject to change monthly, the Prime Rate may change at any time. The maximum APR is 15.00%. The minimum APR is 3.50%
IF YOU QUALIFY, it’s prime minus .75% with a floor rate of 3.50% and a max rate of 15.00%
10 YR interest only & draw period, followed by a 15 YR (P&I)repayment period.
Sorry to burst your bubble, it’s NOT a fixed 25 YR 2nd at 4.50%, (Unless prime stays below 5.25%!)
It is a standard decent rate for a HELOC. Prime could be 10% in a few years, who knows. Do ya feel lucky ?
I recommend large HELOCS to people who need the loan and could pay them off with liquid assets if they had to, if the rates get silly. Up to $250,000 they are easier to get than over $250K.
It’s a gamble to take a large amount for the long term, but could still work out. Hindsight will tell.
Adjustable rates are normally in the house’s favor, and the borrower isn’t the house.
May 12, 2008 at 9:44 PM #203198ParticipantFSBO,
Not only is it “too good to be true”
IT ISN’T TRUE….The fine print isn’t confusing to me.. it’s just the FINE PRINT
Based upon the current Prime Rate, your rate may be as low as 4.25%. Rate is based upon credit criteria. Your rate may be higher. Although your fully-indexed rate is subject to change monthly, the Prime Rate may change at any time. The maximum APR is 15.00%. The minimum APR is 3.50%
IF YOU QUALIFY, it’s prime minus .75% with a floor rate of 3.50% and a max rate of 15.00%
10 YR interest only & draw period, followed by a 15 YR (P&I)repayment period.
Sorry to burst your bubble, it’s NOT a fixed 25 YR 2nd at 4.50%, (Unless prime stays below 5.25%!)
It is a standard decent rate for a HELOC. Prime could be 10% in a few years, who knows. Do ya feel lucky ?
I recommend large HELOCS to people who need the loan and could pay them off with liquid assets if they had to, if the rates get silly. Up to $250,000 they are easier to get than over $250K.
It’s a gamble to take a large amount for the long term, but could still work out. Hindsight will tell.
Adjustable rates are normally in the house’s favor, and the borrower isn’t the house.
May 12, 2008 at 9:44 PM #203222ParticipantFSBO,
Not only is it “too good to be true”
IT ISN’T TRUE….The fine print isn’t confusing to me.. it’s just the FINE PRINT
Based upon the current Prime Rate, your rate may be as low as 4.25%. Rate is based upon credit criteria. Your rate may be higher. Although your fully-indexed rate is subject to change monthly, the Prime Rate may change at any time. The maximum APR is 15.00%. The minimum APR is 3.50%
IF YOU QUALIFY, it’s prime minus .75% with a floor rate of 3.50% and a max rate of 15.00%
10 YR interest only & draw period, followed by a 15 YR (P&I)repayment period.
Sorry to burst your bubble, it’s NOT a fixed 25 YR 2nd at 4.50%, (Unless prime stays below 5.25%!)
It is a standard decent rate for a HELOC. Prime could be 10% in a few years, who knows. Do ya feel lucky ?
I recommend large HELOCS to people who need the loan and could pay them off with liquid assets if they had to, if the rates get silly. Up to $250,000 they are easier to get than over $250K.
It’s a gamble to take a large amount for the long term, but could still work out. Hindsight will tell.
Adjustable rates are normally in the house’s favor, and the borrower isn’t the house.
May 12, 2008 at 9:44 PM #203254ParticipantFSBO,
Not only is it “too good to be true”
IT ISN’T TRUE….The fine print isn’t confusing to me.. it’s just the FINE PRINT
Based upon the current Prime Rate, your rate may be as low as 4.25%. Rate is based upon credit criteria. Your rate may be higher. Although your fully-indexed rate is subject to change monthly, the Prime Rate may change at any time. The maximum APR is 15.00%. The minimum APR is 3.50%
IF YOU QUALIFY, it’s prime minus .75% with a floor rate of 3.50% and a max rate of 15.00%
10 YR interest only & draw period, followed by a 15 YR (P&I)repayment period.
Sorry to burst your bubble, it’s NOT a fixed 25 YR 2nd at 4.50%, (Unless prime stays below 5.25%!)
It is a standard decent rate for a HELOC. Prime could be 10% in a few years, who knows. Do ya feel lucky ?
I recommend large HELOCS to people who need the loan and could pay them off with liquid assets if they had to, if the rates get silly. Up to $250,000 they are easier to get than over $250K.
It’s a gamble to take a large amount for the long term, but could still work out. Hindsight will tell.
Adjustable rates are normally in the house’s favor, and the borrower isn’t the house.
May 12, 2008 at 9:53 PM #203131ParticipantFSBO,
Obviously I don’t know your overall financial picture, but I would consider this loan since you are paying 7.50% now.Depends on your balance and ability to pay it off if necessary, you will be saving over 3% a year on your current loan. For every year that you save 2% or 3%, it would take an equal number of years that the rate would have to be 9.50%-10.50% for you to be averaging 7.50%
Prime would have to be 8%+ for you to be paying in the 7’s on the HELOC. The rate is attractive today, but about 9 months ago prime WAS 8%. It can move fast!
Talk to your tax advisor about the tax deductibility and possible limitations.
May 12, 2008 at 9:53 PM #203180ParticipantFSBO,
Obviously I don’t know your overall financial picture, but I would consider this loan since you are paying 7.50% now.Depends on your balance and ability to pay it off if necessary, you will be saving over 3% a year on your current loan. For every year that you save 2% or 3%, it would take an equal number of years that the rate would have to be 9.50%-10.50% for you to be averaging 7.50%
Prime would have to be 8%+ for you to be paying in the 7’s on the HELOC. The rate is attractive today, but about 9 months ago prime WAS 8%. It can move fast!
Talk to your tax advisor about the tax deductibility and possible limitations.
May 12, 2008 at 9:53 PM #203205ParticipantFSBO,
Obviously I don’t know your overall financial picture, but I would consider this loan since you are paying 7.50% now.Depends on your balance and ability to pay it off if necessary, you will be saving over 3% a year on your current loan. For every year that you save 2% or 3%, it would take an equal number of years that the rate would have to be 9.50%-10.50% for you to be averaging 7.50%
Prime would have to be 8%+ for you to be paying in the 7’s on the HELOC. The rate is attractive today, but about 9 months ago prime WAS 8%. It can move fast!
Talk to your tax advisor about the tax deductibility and possible limitations.
May 12, 2008 at 9:53 PM #203231ParticipantFSBO,
Obviously I don’t know your overall financial picture, but I would consider this loan since you are paying 7.50% now.Depends on your balance and ability to pay it off if necessary, you will be saving over 3% a year on your current loan. For every year that you save 2% or 3%, it would take an equal number of years that the rate would have to be 9.50%-10.50% for you to be averaging 7.50%
Prime would have to be 8%+ for you to be paying in the 7’s on the HELOC. The rate is attractive today, but about 9 months ago prime WAS 8%. It can move fast!
Talk to your tax advisor about the tax deductibility and possible limitations.
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