home equity line of credit?
Can anyone give me the details on obtaining a HELOC? Is there some comparison shopping to do when entertaining the thought of this? I put 1/2 down on a $300K 3 years ago and my credit is good enough to obtain a regular credit card if I apply. How much money could I get and how is the loan repaid? Basicly how does the process work? Any info I can get is helpful!
How much you can get depends on your income, credit score and the value of the home. Many HELOCs are easy to get with your bank if you have a good relationship in place. They’ll run your credit, verify your income, do an appraisal (maybe even a ‘drive by’) and then extend an offer. You can get 90-95% LTV in the best of circumstances.
It would be safe to assume your house is worth $300k. It might be worth more, but in this market I wouldn’t count on much more. 5% a year is the historical number, but if you’re on either coast or in large urban area, I would bet on no growth in 3 yrs.
So, assuming your credit is great (over 700 middle score) and you owe $150k, your most optimistic scenario would be about $120k on a HELOC.