Home Equity Loan

hunterjmj

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Feb 3, 2019
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Have some bigger projects to do around the place and just started looking into it. Would like input from personal experience with different companies?
 

Team4LongGun

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I suggest using local banks, for numerous reasons. Only Navy fed/USAA generally beat local. I know my credit union does no fee loans which is nice.
 

Yoder

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Jan 12, 2021
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I decided against a home equity loan. I didn't want the additional debt tied into my house if I had some financial problems. I went with an unsecured loan with Lightstream. Got an interest rate around 6.5% for 84 months. Just an alternative if you're interested. I know you can deduct the interest with a home equity loan but my house will be paid off in 18 months. I would rather own my home and have an outstanding loan separate from the house.
 

Northpark

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Mar 8, 2015
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Following. Looking for one of these today. Have a $27k retaining wall that needs to be built.
 

svivian

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Mar 16, 2016
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Colorado
Do a Line of Credit rather than a loan. Rate is variable but alot of places will let you lock in the rate if there is a balance. Dont go with a bank that charges appraisal costs, title fees, origination etc... lots of places that dont charge for that. Shop for the best adjustable rate and ask about annual fees.

Most places only go up to 80% combined loan to value
They usually are a 10 year draw period where you can use and pay back over and over
Alot of places also offer just interest only payments.... great for flexibility but dont fall into the pit of not paying any principle.
 

JBrew

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Jun 6, 2019
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If you go the HELOC route, make sure you understand that some loans have different payback periods, for the amount of $$ you have drawn out. For instance, the HELOC I offer has a payback period of 60 months, up to $5K. 96 months for 5-10K. 120 Months for 10-15K....etc. It's gotten to where it's almost better to draw the whole amount that you're taking the line out for, putting it into a savings account, and making the same monthly payment on it. Of course rates are about to go up again. YMMV
 

JoeDirt

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Mar 6, 2019
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I took out a HELOC this year. Seems the best for home projects, use what you need. Lock in a rate later if you want. My current rate flexible currently at 5.875%
 
OP
hunterjmj

hunterjmj

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Feb 3, 2019
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Montana
Thanks for the input! Still reading up on the 2. Leaning towards the home equity loan. I have zero debt and a paid off house so it wouldn't be a second mortgage I guess. I've gotten some quotes for jobs, a new well, power run to my shop, move the service coming into my house for upcoming remodel, and a bunch of concrete. Ive got quotes so I have a fairly solid number in mind.
 

coloyooper

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Feb 10, 2017
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CO
HELOC's have a moving interest rate. A lot of time it is Prime+x%. With the market the way it is today, that number could vary quite a bit.
Can confirm. OP, keep an eye out for that. We took one out earlier this year (with a great rate) and Our rate jumped recently fairly significantly. Still far better than any personal loan you could get but something to keep in mind.
 
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