Return to the Household Finances Forum | Post a Follow-Up

Home Equity loan -pay points? How to decide between two banks??

Posted by slc2053 (My Page) on
Mon, Apr 9, 07 at 22:16


I'm first time visitor and poster to this If I ask something that you can easily answer by sending me to a previous thread, go right ahead. We're debating between banks with similar interest rates for a home equity do we decide when both banks seem like they are well established? Can we discuss banks here? We're trying to decide between Wachovia and Sovereign...Wachovia boasts that they won't sell our that important? I've had loans sold before with no consequences (that I saw)...also their rates are very, very close, but one requires an account at their bank (a checking..) and the other doesn't...Wachovia doesn't, Sovereign does...yet Sovereign's rates are .10 lower...when banks seem similar when it comes to a home equity loan, how do you decide??


Follow-Up Postings:

RE: Home Equity loan -pay points? How to decide between two banks

Do you have to pay the loan out of the checking account? Is there a minimum balance or do you have to actually use the checking account? Are there any closing costs, fees, title or appraisal fees, attoeny fees, application fees. Do you have to pay any points. Will either Escrow your taxes or require additional insurance

Are there any prepayment penalties

If all things are the same and you do not have to keep much money in the checking account or pay the loan out of it I would go with the lower rate. I personally do not care if they sell the loan

RE: Home Equity loan -pay points? How to decide between two banks

There's alot of lenders who don't charge points or closing costs for a home equity loan. You also want to find out if there is any prepayment penalty on the HE loan.

We got our HELOC through USAA. No closing costs. No points. No charge for appraisal. Nothing. And we got prime -1 for the rate.

Shop around, you could find a more favourable rate without paying the points.

RE: Home Equity loan -pay points? How to decide between two banks

Good point, we paid a total of $75.00 on a fixed rate HELO at market rate in 2005. They have been great so far. It was with Commerce

 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!

Return to the Household Finances Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Please review our Rules of Play before posting.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.

Learn more about in-text links on this page here