I guess I was wrong about the discount off prime, it’s the discount off prime plus BofA margin, which adds 1.885%. I guess it’s still a good deal as far as HELOCs go, but not for what I wanted to use it for. I got a 2.175 discount so ultimately I would be under the prime rate if I did it.
Think home mortgage rates will go even lower?
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I guess I was wrong about the discount off prime, it’s the discount off prime plus BofA margin, which adds 1.885%. I guess it’s still a good deal as far as HELOCs go, but not for what I wanted to use it for. I got a 2.175 discount so ultimately I would be under the prime rate if I did it.
Sorry just seeing this. Home equity line is going to be the cheapest and quickest. Typically banks will do them for $0 closing costs. I only recommend HELOC's for short term purposes or emergencies. The rates are variable and interest only. Obviously you can pay more towards principal, but I know some people like to make the minimum.
I have a few people refinancing and getting cash out. Rates are typically bumped .25% or more than a rate/term refinance but cashout rates are in the mid 3's on a 30yr. Still dirt cheap.
I believe the 15yr but call BS on the 30yr unless the points are built in elsewhere.
Would like to know the costs and the loan amount to value of home.
(Also a banker...)
I'm surprised anyone still offers HELOCs. Fine if you have customers who move, but nothing like a fully drawn HELOC maturing as a customer retires, THEN you have to renew and amortize. Without careful consideration of collateral value.
I don't care for regulatory agencies, but they should ban interest only payment.
This is from my CU's website...just pulled it. Not sure if and where points may be built in but there is no mention of them. Only a .125% lower rate for one with the origination fee. I have an email into my mortgage contact with questions about closing costs, points, etc. The asterisk takes me to a footnote that says only, "90% financing available". TIFWIW
This is from my CU's website...just pulled it. Not sure if and where points may be built in but there is no mention of them. Only a .125% lower rate for one with the origination fee. I have an email into my mortgage contact with questions about closing costs, points, etc. The asterisk takes me to a footnote that says only, "90% financing available". TIFWIW
.75% can be expensive depending on the loan amount. To me still not worth paying for only .125% discounted rate. The 2.75% is aggressive and they should be absolutely swamped with that rate. Fannie and Freddie were above 3% on Friday so I wonder if your CU purchased "x" amount to fill that bucket at 2.75%? Nothing against CU's, but I think of them for auto loans only.
Take 2.75% if you can get it with no points.
That's my plan if I can do it. I'm currently on a 7/1 ARM at 3.375% so this would be a .625 drop. Unless they have crazy closing costs or hidden fees, I'm on it. This is an extremely reputable, highly rated CU...one of the highest rated in the country and maybe *the* highest rated in Indiana. Been very happy with them. They also have 3.3% interest on checking accounts up to $20k, so we're all over that too. Put the extra in a money market or CD, something else short-term and liquid, but taking full advantage of that 3.3%.
This is from my CU's website...just pulled it. Not sure if and where points may be built in but there is no mention of them. Only a .125% lower rate for one with the origination fee. I have an email into my mortgage contact with questions about closing costs, points, etc. The asterisk takes me to a footnote that says only, "90% financing available". TIFWIW
who’s the credit union? I’ll open an account on Monday. They do loans in other states?
Not sure if they do loans in other states, but they are ETFCU, or Evansville Teachers Federal Credit Union.
****, I’m calling them Monday
me: “hey you son of bitches, I hear ya’ll got 2.75% home loans”
Do you get a referral reward if I put down Bigbluelou as a name?
Haha, not sure, but if you do get a hit, pm me and I'll give you my real contact info. Good luck!
Also, be *sure* not to confuse ETFCU with EFCU (Evansville Federal Credit Union). Gotta have the T for Teachers in there. People get them mixed up all the time.
im in the house hunting hunt. I’ll ask if they give a referral reward. They do a Florida loan. I got you.
Pretty sure they purchased American Founders out of Louisville a few years ago. Might go as First Liberty Mortgage or something like that in Louisville now.
The interest is nice on the checking but at the end of the day, is it really worth it to you? They are making $$$ on your debit card swipes and tying you into banking with them. What do they pay you on balances more than $20,000?
They don't pay anything over $20k, which is why we max that out, then move additional liquid funds to other accounts, e.g. CD's, MM's, etc. As for is it worth it to me, I would say yes because we were already doing all our business with them, so it was no change for us.
Wasn't aware of their buyout of the company in Louisville, but then I'm not in the industry.
Rates are still high even thought the bond markets support sub 3% rates due to the demand. Banks can’t handle the overload of refis at record low rates with processing centers operating on limited capacity. Probably wait until the first month after the virus is in check and you will get a 2.25-2.5% on a 30 year fixed. That is if you still meet credit policy as it pertains to job time and d/I ratios.
I have a question for the bankers.
I have a rental property I own free and clear. Interested in potentially buying a couple other properties and taking a loan against all three in the LLC. I will maintain 50%+ equity position if I go this route.
Would I absolutely see a huge premium on this vs a personal mortgage? Would it require three loans or could I possibly borrow vs the LLC with three properties.
I have a rental property I own free and clear. Interested in potentially buying a couple other properties and taking a loan against all three in the LLC. I will maintain 50%+ equity position if I go this route.
Would I absolutely see a huge premium on this vs a personal mortgage? Would it require three loans or could I possibly borrow vs the LLC with three properties.
Locked my rate at 2.50% last week at for 15 years. Payment will be just a little over $100 more than what I was paying and will cut 7 years off of my original 30 year mortgage. This morning I could have gotten 2.375%.
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