Financing in 19082>Question Details

Vi, Both Buyer and Seller in Upper Darby, PA

Home equity Loan closing cost?

Asked by Vi, Upper Darby, PA Wed Oct 29, 2008

Hi Everyone,

I just want to know what is the average closing cost for an Home Equity Loan for $100K?

I notice at sovereign bank there are no closing cost for HELOC. Do you think the HELOC loan will be better?

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Hi Vi,

Depending on the relationship that you have with the bank or the credit union, there are a lot of financial places that will do a no cost line of credit. Some charge anywhere from $500 - $1000.00. It is hard for me to know if that would be your best option since I do not know the full situation. If you would like me to give you a rate quote and closing for Wells Fargo, I would be happy to do that for you.

I wish you the best of luck with your new investment property. It is a great time to buy right now!

Regards,
Jacqueline Kounkel
303-907-3334
Wells Fargo
Private Mortgage Banker
0 votes Thank Flag Link Wed Oct 29, 2008
You would be better off refinancing your current home and taking that equity and purchasing the other property. Interest rates are always higher on investment loans. I would advise getting a fixed rate rather than a HELOC because of the adjusting interest rate, however, I know a lot of investors that like the HELOC because it gives them flexibility. They are usually interest only for the first ten years and you can pay them down quickly with rent revenues.
It all comes down to what you are most comfortable with. Good Luck!

Michael

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
michaelddelp@aol.com
michaelddelp@verizon.net http://www.mortgagepro.instantlender.com
0 votes Thank Flag Link Wed Oct 29, 2008
Thanks for the answer.

I own 100% equity on the home and a credit score close to 760. I am thinking about taking an home equity loan out and purchase my investment property, then refinance to pick up the equity left on the home.
0 votes Thank Flag Link Wed Oct 29, 2008
Closing costs on second mortgages vary from Lender to Lender. It depends on a lot of things. Credit score, loan to value, term lenth of the loan. HELOC loans are usually offered at low or no closing costs because they fluctuate with prime. It is not a fixed loan so the bank will always make money on the margin between what they are getting the money at and what they are charging you.
I hope this helps. If you need more help, feel free to contact me. the very best of luck to you.
Michael

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
michaelddelp@aol.com
michaelddelp@verizon.net http://www.mortgagepro.instantlender.com
0 votes Thank Flag Link Wed Oct 29, 2008
There is no such thing as no cost loans- there is always a cost, its just a matter of where it is hidden- On a HELOC it would be hidden in the margin (margin is the percentage over prime that you will be charged) the question you need to ask is - "if there was cost what would my final rate be, and if i choose no cost what will my final rate be" then make your choice based on the final cost that the money you borrow will cost you over the life of the loan. Remember rate and APR are different, you always want to look at the APR. The APR is the true cost of the money
Web Reference: http://mortgageetc.info
0 votes Thank Flag Link Wed Oct 29, 2008
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