What is a good rate on a HELOC these days?

zanna3September 30, 2006

Hello all --

I currently have prime minus a quarter, but am looking to get a new, larger HELOC since my home value has gone up. Have been offered prime minus a quarter again on the new loan, but is that good or just so-so?

Thanks much,

- Zanna

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I'd say that's good. We're at prime flat. Who is your lender.

    Bookmark   October 1, 2006 at 7:23AM
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The old loan is through Indymac (originally through Eloan), but I could go anywhere with the new loan.

    Bookmark   October 1, 2006 at 11:57AM
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Zanna3, once you find a lower rate, be sure to tell your current lienholder *in person* that you are thinking of moving to another HELOC. Often times, they will better, or at least match, a competitor's quote, particularly if you have been a good customer (i.e. used the line and not been seriously delinquent).

    Bookmark   October 2, 2006 at 12:11PM
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Our lender is National and we're at prime minus one percent.

    Bookmark   July 20, 2007 at 8:53AM
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Zanna 3,

On my LOC, fully secured by stocks and mutual funds, the rate they quoted a while ago was 6.25%, but the Bank of Canada put their rate up 1/4 point the other day, so it's likely 6.5% now.

I haven't used it for some time. Haven't shopped around for competitive offer, either, as I don't plan to use it soon.

Do they charge you set-up and/or appraisal fees, or a fee if you let it sit unused for a period? They haven't me.

I don't mind borrowing for purposes of investment that I feel has a good posibility of increasing my assets, when I think that conditions warrant.

But I rarely borrow for consumer goods or activities, as it seems to me that suggests that I'm living beyond my means. I don't like contracting to pay next year for stuff that I wanted this year but couldn't afford to buy using current income.

That makes a double whammy on next year's income, for I have to pay for stuff that I ate this year. Plus I have to pay the guy who owned the money for the privilege of using his, for a while.

I claim that I can borrow to invest in quality stocks (or some other assets) for, frequently, almost no net cost.

Good wishes as you find more effective ways to manage your money.

ole joyful

    Bookmark   July 21, 2007 at 3:30AM
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I'm in the process of getting an HELOC through Bank of America. I was told that once all purchase for the project are completed, I can lock in at the current rate at the time.

Also, with HELOC, BoA allows you to use for home repairs whereas a Home Equity Loan only allows for home improvements.

    Bookmark   August 6, 2007 at 7:49PM
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