Cash-out refi..

[wes122984]

Stay away from HELOCS. If you've got the equity in your home to do it, a cash-out refi is a much better deal than a HELOC.

Those closing costs don't sound bad to me...I'm a mortgage loan officer and I've got several refis in the works right now. They sound pretty reasonable.

how can you make such a broad statement about helocs?
there is no way without knowing his situation you can say that. there are many situations a heloc is a way better deal than a a6.

[frobow]

I've also been in the industry for many years and would be happy to help you. I'm a Sales Manager(refinance dept) for the largest non-bank servicer if that even matters but PM me and I'll provide my expertise.

Those that have said not enough info to say if this is a good deal or not good are correct. He could be buying the rate down due to risk factors like credit scores, Loan-to-value(amount of equity), loan program, etc

Cash out refi vs heloc or fixed rate second all have their niche in the lending world just depends on the what's, why's and for long. Closing costs averaging 1% of the loan amount on a 1st mortgage hasn't been the case for major lenders in awhile...Some lenders charge a 1% origination fee!

Hope this helps!

[quackadikt]

how can you make such a broad statement about helocs?
there is no way without knowing his situation you can say that. there are many situations a heloc is a way better deal than a a6.

Then educate me. I've been on the real estate side and the mortgage side of things and I've never heard one good thing about a HELOC, but I'm definitely willing to learn something if you can teach me.

Sent from my XT1585 using Tapatalk

[quackadikt]

Closing costs averaging 1% of the loan amount on a 1st mortgage hasn't been the case for major lenders in awhile...Some lenders charge a 1% origination fee!

Hope this helps!

We do on our portfolio loans, but we can finance some whacky things that 99% of lenders won't touch.

On brokered/correspondence loans, we don't charge that.

Sent from my XT1585 using Tapatalk

[JeffJ]

Stay away from HELOCS. If you've got the equity in your home to do it, a cash-out refi is a much better deal than a HELOC.

Those closing costs don't sound bad to me...I'm a mortgage loan officer and I've got several refis in the works right now. They sound pretty reasonable.

What makes the cash out refi a better deal than a heloc?

[quackadikt]

What makes the cash out refi a better deal than a heloc?

Rates and credit dings from what I've seen.

Sent from my XT1585 using Tapatalk

[wes122984]

Then educate me. I've been on the real estate side and the mortgage side of things and I've never heard one good thing about a HELOC, but I'm definitely willing to learn something if you can teach me.

Sent from my XT1585 using Tapatalk

whats bad about them? they can vary greatly from one institution to another. no closing cost- intro rates etc. fixed rate option or variable or both. no cost to have it unless you use it.

if the guy wants to remodel/ update his house to get it on the market next year it makes zero sense to refi and pay closing cost. it might if his 1st is such a high rate. (unlikely)
he said it best above me, why what and how long. if its a short term need you for dang sure better be comparing it against a heloc to do right by your customer.

variable rates can be had for under prime, and fixed rates in the 4% range also with zero closing cost.

[wes122984]

Rates and credit dings from what I've seen.

Sent from my XT1585 using Tapatalk

not sure how your company structures them but its 1 credit pull and rates not much higher than a mtg. also faster to close typically and a lot less paperwork from the borrower.

[frobow]

Then educate me. I've been on the real estate side and the mortgage side of things and I've never heard one good thing about a HELOC, but I'm definitely willing to learn something if you can teach me.

Sent from my XT1585 using Tapatalk

Savvy investors will use a heloc because they can borrow, pay it back, borrow again etc as needed. Or they just like having quick access to cash but can carry a $0 balance and $0 payment so only paying interest on the outstanding balance is appealing. The closing costs are much lower on a Heloc vs cashout refi.

[frobow]

For cashout refi's(as an example), someone who plans on selling in 5-7yrs doesn't need the long term security of a 30yr fixed rate when 5/1 and 7/1 FixedARM's would make a ton more sense for the lower fixed rate during those 5 or 7yrs.

[quackadikt]

I wasn't thinking about a remodel job honestly, but that's definitely where a HELOC would be a better choice, but I really appreciate the insight on them. You learn something new every day!

We don't offer a HELOC, I've just seen them on credit reports and our director isn't a fan of them.

It's also not great if you're trying to sell a house and have a mortgage and a HELOC on it. As far as rates, it seems like the going rate is 5s or better, vs 3s-4s for a COR.

I'd say in this guys situation, buying investment properties, he'd be better off going a COR, but that's just me.

Sent from my XT1585 using Tapatalk

[Throwin Darts]

Stay away from HELOCS. If you've got the equity in your home to do it, a cash-out refi is a much better deal than a HELOC.

Those closing costs don't sound bad to me...I'm a mortgage loan officer and I've got several refis in the works right now. They sound pretty reasonable.

You must be new to real estate. There are tons of situations where HELOCS make a lot more sense than a cash out refi. Whether or not your Director is a fan of them is irrelevant

[quackadikt]

You must be new to real estate. There are tons of situations where HELOCS make a lot more sense than a cash out refi. Whether or not your Director is a fan of them is irrelevant

I've been in the real estate world for about 5 years, and of all the lenders and realtors I know, I've never heard anyone suggest a HELOC. I'm not saying they're wrong, just never met anyone here that likes them at all.

But like I said, I'm always open to learning. The day you think you know it all is the day you need to find something new to do.


Sent from my iPad using Tapatalk

[wes122984]

I wasn't thinking about a remodel job honestly, but that's definitely where a HELOC would be a better choice, but I really appreciate the insight on them. You learn something new every day!

We don't offer a HELOC, I've just seen them on credit reports and our director isn't a fan of them.

It's also not great if you're trying to sell a house and have a mortgage and a HELOC on it. As far as rates, it seems like the going rate is 5s or better, vs 3s-4s for a COR.

I'd say in this guys situation, buying investment properties, he'd be better off going a COR, but that's just me.

Sent from my XT1585 using Tapatalk

Selling a house with a heloc is no different than selling one with a mtg. the debt get paid at closing if there is a balance. if no balance simply call the bank and close it. its still the texas 80% rule.

we open a ton of heloc for people buying investment properties. depends on the scenario. if buying 1 and holding it or buying and flipping. i dont know the op scenario to make that call. how much cash out is he taking? whats the balance and rate on the first if any? will he ever need cash out of the property again?

here's our rates on 100k. there is also 2.99 for first 12 months and these rates do not include .25 auto debit discount and up to additional .375 relationship discounts. not saying this is the best rates out there either.
now compare it to your APR on a cor

[wes122984]

I've been in the real estate world for about 5 years, and of all the lenders and realtors I know, I've never heard anyone suggest a HELOC. I'm not saying they're wrong, just never met anyone here that likes them at all.

But like I said, I'm always open to learning. The day you think you know it all is the day you need to find something new to do.


Sent from my iPad using Tapatalk

most realtors dont know squat about lending. most lenders/brokers push customers to cash out refi ( they pay you more)