No Fee Home Equity Line Of Credit

Hi everyone,

Where can I find a reliable HELOC with no prepayment fee if I sell my house? All large banks I've asked have a 2,000 fee if I sell the house within 3 years.

Thanks!

most banks that I know of will charge a pre-payment penalty in you close the line out before 3 years. Becareful with this as some lenders do have what they call a flat fee, but then they tack on title insurance (if required) and mortgage recording fees. I would try some smaller, local banks or if you have accessibility to one a credit union, that may be your best bet

2008-05-15 09:14:21 by christofe1

Simple example of borrowing from equity to fuel consumption

The bank is offering a line of credit sale. I pay no fees, the bank is covering all closing costs, state taxes, appraisal fees and the first year annual fee. I can take out a line of credit on the equity of my house. The rate is prime minus 1/2.

What is in it for them? Could there be a hidden downside for me? What do you think?

This sounds normal to me. They make their money on the interest and incidentally, you must have good credit becuase prime minus half is good. I don't think their costs incurred are all that much and half the time the appraiser doesn't even look inside the house. It's basically a good source of low cost credit for people with equity in their homes. (low risk for them.) I assume it's a reputable bank.

2007-10-20 13:30:09 by moviefan2020

Does anyone know the typical point for a home equity line of credit ? By point, I mean the up-front fee that is proportional to the credit limit. So if the term asks for 5 points (5%) and the line of credit is $100,000, there is a $5,000 fee. Do you think that the numbers I've just mentioned are a pretty good deal, assuming that the interest rate is good? Thank you.

The minimum equity needed for a HELOC is 10% but it may be difficult to qualify for that and there will be fees on top of that. A typical HELOC requires you to have 25% equity/down-payment and ok credit (Your credit doesn't have to be perfect... If you applied for a credit card today, would you be approved? If yes, then your credit is good enough to qualify).

5% will only get you a typical mortgage.

2007-02-25 21:10:19 by gradjimbo

Hello everyone, I need to move to another location. Can I take a home equity line of credit on my existing house to pay for the down payment of a new home, and then sell the first house that I used for the line of credit? Are there any restrictions to do that? Can I avoid the fee that I will get if I sell the first house early? Thanks.

I agree with the first answer. You will have to disclose the source of the funds on the purchase of the new home so that they can calculate the debt ratio correctly.

I would add that it will be difficult to get a home equity loan if the home is listed for sale. Get the home equity loan first if at all possible.

Otherwise what you are looking for is a bridge loan. Some lenders offer them only if they have the purchase loan on your new home so take care to make all of the arrangements in advance so that you don't end up in a jam.

You also need to consider whether or not you will be able to get the home sold quickly for what you owe on it or be able to carry both houses while your current home is on the market. Without having your current home sold, you will have to qualify with all the payments in your debt ratio and you have no idea how many people have bought a home thinking there current home would sell only to go broke trying to carry two payments and then let the one on the market go to foreclosure.

Good luck with the move and be careful. There are worse things than renting for a while where you are going.

2008-05-13 19:51:48 by christofe1

I want to open a home equity line of credit. I have 100% equity in my house and an excellent credit rating. I am planning on moving, but would like to buy another house first, and then sell my current house (which would sell for a higher price than the one I would buy).

If I use the equity line to buy a house, would the bank permit me to sell my current house and pay them off at the closing? Kind of a bridge loan without the fees.

I agree with Ibu Guru, I think you are making a big mistake, do not use a loan to get another loan, payoff the first house and save to purchase another, remember that the people who are being foreclosed are those that have mortgages.

2009-02-26 08:44:20 by lamontnow