Home equity loans

[staboner 4984]

Hi Friends, so I am considering getting like $40k or so from refi/home equity loans. Have about 66% equity and great credit (800 score) so all good there, but I explored refinance and the rates are much worse than what I got from Phil and crew in 2013. 

Have 15 year 3.25% and refi equivalent looks like at least 1% higher on a 10 year and even higher on a 15 year note

Anyone have a good story on just a home equity loan (sans refi)? What kind of rates are out there now and/or what is the best party to get one from?

Any comments welcome. Just starting to look now

[CO Horn 167]

Interest on home equity loans are no longer deductible as mortgage interest. 

[Anastasis 23481]

I think it kinda depends on what you are using the money for. I opened a heloc for short term cash. Interest only payments. Worked for my purpose at the time.

[staboner 4984]

11 hours ago, Anastasis said:

I think it kinda depends on what you are using the money for. I opened a heloc for short term cash. Interest only payments. Worked for my purpose at the time.

thinking about putting like $30k into house. kitchen + some other shit. investing in the kitchen is a no brainer. central austin with house that has a plastic kitchen from the 50's. 

maybe also some student loans that are in the 6% area. begs the question on the rates

where is Phil? does he to HE or refi?  I will dig around on this and post more as i get into it today 

[UTPhil2006 3809]

PM replied. 

[Bernard 879]

I have a $175k HELOC from IBC Bank in Houston. 10 year term. 5% rate. Adjustable rate, so it could go higher if rates rise. Current balance is $0.00 so I don't pay too close attention to the rate. Payments are interest only.

Word the Wise: get your HELOC set up before you actually need it. When (or if) you do actually need the money, you might find it's harder to get. I've used mine over the years for various situations where access to quick cash was very nice without having to dip into any other funds.

Bernard

[Baboontyme 2821]

Hello, I am exploring some options with a couple of lenders but I don't know jack about this field. I would appreciate any things to watch out for, general advice, etc. 

18 years into a 30 yr currently, have a shit rate from '03/'04 and never re-fi'd (~5.4). Probably have about 2/3 equity in the house as is. Looking to take a large loan for a major remodel that also probably amounts to 2/3 equity of current home value. We would be pursuing a refi at the same time. Last I spoke with this lender a year ago, she was talking about a "rehab loan". https://www.homebridge.com/renovation-lending/fha-203k-loan/rehab/

Does that sound about right? Anything else I should be looking at in terms of a loan type?

[UTPhil2006 3809]

Definitely don’t do that. Just a normal cash out refi should be sufficient. Shoot me a PM or email and I’ll take care of you. Pdubord@prodigymbo.com

[dirtonia 269]

Another plus one for Phil and team. They got me squared away on a cash out refi and were great to work with. Our kitchen and bathroom remodel should be done in two weeks!

[LebongJames 1813]

53 minutes ago, UTPhil2006 said:

Definitely don’t do that. Just a normal cash out refi should be sufficient. Shoot me a PM or email and I’ll take care of you. Pdubord@prodigymbo.com

Listen to this man. They take care of you. Refinanced no cash out into 2.59 30 year fixed last month. Super easy, Phil’s team takes care of you.

[Baboontyme 2821]

Cool. Phil going to email you now. Thanks all. 

[BillyBadAss 189]

What's the calculus for doing a cash-out refi vs a home equity. UFCU can do 3.25% on a $100k 10/year home equity loan - which equals my mortgage rate. Closing costs would be ~2k/2%.  The rate steps up a quarter for a 15 year, another quarter for a 20 year. 

Anybody see better than that? 

@UTPhil2006, you guys do home equity loans? 

[UTPhil2006 3809]

We do but few and far between just because a lot of the time there are better vehicles for what people are looking to do.  I'd need to know current rate, how many years you have left, what you're looking to accomplish and whatnot to give you a more accurate diagnosis.  You can use the email above or PM so that you're not putting your business out there and I can get you a solid answer

[Gil Bang 25990]

On 2/24/2021 at 3:09 PM, dirtonia said:

Another plus one for Phil and team. They got me squared away on a cash out refi and were great to work with. Our kitchen and bathroom remodel should be done in two weeks!

It will be done in 6 weeks, if it goes as remodels go. 

[ChickenSandwich 9848]

On 2/24/2021 at 5:38 PM, BillyBadAss said:

What's the calculus for doing a cash-out refi vs a home equity. UFCU can do 3.25% on a $100k 10/year home equity loan - which equals my mortgage rate. Closing costs would be ~2k/2%.  The rate steps up a quarter for a 15 year, another quarter for a 20 year. 

Anybody see better than that? 

@UTPhil2006, you guys do home equity loans? 

Did this with RBFCU. Closing costs were $450.00. Tax value was used, no inspection necessary. Said anything under $125k loan would be done in house and avoid closing fees. Offered all the way to 30 years. Was a no brainer compared to a refi with closing costs. 

[Spur08 382]

Maybe an odd question, but I will be receiving a profit of about $35-40k from a (syndicated) real estate investment. What applies during a 1031 exchange? I'm kind of thinking the commercial/syndication real estate game isn't for me and am trying to figure out what to do w the proceeds. Can I just roll it into my personal mortgage? Do I need to create some other home improvement note on my home to make it work? We would love to invest in a nice covered structure for the pool and maybe a small pool remodel.

[Spur08 382]

Funny.  I don't remember writing that last post, but plans still stand.

 

I'm looking to potentially do a decent remodel of the backyard with the budget of anywhere between $50-100K.  Obviously rates are dogshit right now @UTPhil2006, right?  I do have a good amount of equity in the house, but don't want to touch my 3ish% note.   What would be the best financing approach for something like this?  

[Bevo 13593]

14 minutes ago, Spur08 said:

Funny.  I don't remember writing that last post, but plans still stand.

 

I'm looking to potentially do a decent remodel of the backyard with the budget of anywhere between $50-100K.  Obviously rates are dogshit right now @UTPhil2006, right?  I do have a good amount of equity in the house, but don't want to touch my 3ish% note.   What would be the best financing approach for something like this?  

Probably shouldn't do the project right now and maybe do the project piecemeal or just save up in the meantime. Rates are terrible and ROI on backyard projects are terrible.

[UTPhil2006 3809]

10 hours ago, Spur08 said:

Funny.  I don't remember writing that last post, but plans still stand.

 

I'm looking to potentially do a decent remodel of the backyard with the budget of anywhere between $50-100K.  Obviously rates are dogshit right now @UTPhil2006, right?  I do have a good amount of equity in the house, but don't want to touch my 3ish% note.   What would be the best financing approach for something like this?  

If you do it, more than likely a HELOC is going to be your best (read: less worse) route currently. Shoot me a PM or email (still the same one as above) with your info and I can price it for you