Home equity line of credit questions/help
We're planning a kitchen renovation in the near future and are looking to finance it with a HELOC. I'm looking for some guidance as to whether we'd likely get a better rate from the large bank that holds our mortgage or the large bank that we do all of our personal and business banking with. If I approach them both, would that reflect negatively on our credit report?
Also, I'd really like to be a bit clearer on what I'm getting into. I have experience paying off typical car loans but this is new to me and I admittedly don't like debt. I'm trying to figure out how my monthly payment would work. Is there a way to do the math to see how long it would take to pay off & how much interest we would wind up paying if I were to plug in numbers somehow: Say, if we were to take $20k at 6% interest, paying $800 per month for example? Is doing a HELOC only a good idea if you can pay it back within a certain amount of years? If so, how many? I know- I'm clueless.
I'm just trying to become a little informed before I call the banks. Any guidance would be appreciated.