TheSoCalLoanPro.com with California's most Trusted Mortgage BrokerTheSoCalLoanPro.com with California's most Trusted Mortgage BrokerSouthern California a Home Loan Expert,  Teresa Tims at TheSoCalLoanPro.com with California’s most Trusted Mortgage Broker .  What is Home Equity Line of Credit or HELOC? Need some cash and want to know what’s the best way to get a 2nd Mortgage or Heloc? Watch this video to get all of these questions answered.

What is a Heloc?

Home Equity Line of Credit or HELOC

It’s called a heloc because the value adjusts on how much you access at any giving time that way the payment is adjustable in nature. A 2nd Mortgage is a fixed loan just like the Heloc and works the same but does not adjust so you would get a 30k loan and get the cash all at once.

 

How Do They Work?

Full credit qualifying loans
Usually they only take a couple weeks to apply and fund
Good idea is to find out if a Heloc vs 2nd Mortgage vs Cash Out Refi makes the most sense and we can help you with that. Call us at 909-920-3500

 

Are they Fixed or Adjustable
Which is better?

Rate: I am seeing 5-7% pretty regularly for interest rates

Term: Typically 10-15-20 years but if a large loan amount could be 30 years
Loan to Value (LTV) is 80% across the board
Max amount you can access IE “what’s the maximum Loan vs the appraised value or LTV

Example: 100K appraised value | 50K Existing Loan | if 20% of the equity has to stay in the house in this example you can only get 30K
80k minus existing loan of 50K = 30k THAT’S WHAT YOU CAN GET A HELOC

Where do you get one?
I find that banks and credit unions are good sources

Ways to compare with lenders
Watch the video

Is it ok to run my credit 2-3 times
Yes!!!!

What are the pitfalls
Conservative value is low appraisal

CASE Study
What it looked like when I shopped for a heloc on my Owner Occupied property in Rancho Cucamonga. Current Value 725k Owe 500k so 80% value is 580 can access 80K

Values came back like this!!!
Union Bank 640K
B of A 710K
US Bank 675

ALTERNATIVES.
CALL ME AND LET ME EVALUATE AND HELP YOU EVEN IF I CAN’T OR DON’T DO HELOC I CAN POINT YOU IN THE RIGHT DIRECTION 909-920-3500

TDR MORTGAGE Can access u to 90% of your value with a combo loan IE 75/15/5 75% 1st 15% second or 80/10/10

 

Teresa’s Top Tips when shopping for a HELOC

 

  1. Values are going a little, so secure a heloc now?
  2. “IF” you want cash out down the road For home improvements OR DEBT CONSOLIDATION but are not quite ready GET A HOME EQUITY LINE NOW WHILE VALUES ARE HIGH JUST IN CASE!!
  3. If you want an Equity Line and not sure where to start call me I would love to help, I can’t do them unless it’s combined with a 1st but I am happy to point you in the right direction.
  4. Sometimes it’s better to cash out instead of a Heloc – let me help you figure it out.
  5. Home Equity lines only go up to 80% of your value, if you don’t have enough equity we can help you go to 90% of your value.