HELOC and HELoans - Why with a higher rate?

[pianoman9701]

If you have a great rate on your 1st mortgage and need to pay off student loans, build a new project, consolidate high interest debt, instead of losing that great 1st mortgage rate, you can borrow on your equity with a HELOC or HELoan. HELoans are specific loan amounts locked at the beginning and HELOCS are a credit line and float the rate.

[highside74]

What are rates now for the different equity loans. A new shop is in the cards maybe in the next spring. We have amazing credit and at least 50% equity. Out rate now is 2.875 so an equity loan would be best but which type escapes me.

[pianoman9701]

What are rates now for the different equity loans. A new shop is in the cards maybe in the next spring. We have amazing credit and at least 50% equity. Out rate now is 2.875 so an equity loan would be best but which type escapes me.

Rates are normally 2-3% higher for HELOCs than regular mortgages.

[Mark Brenckle]

How much loan to value are you able to get?

[Alchase]

I thought I just heard on the news, that 30 fixed rates are now at 7%, highest in 20 years 

[pianoman9701]

How much loan to value are you able to get?

Normally 80%

[pianoman9701]

I thought I just heard on the news, that 30 fixed rates are now at 7%, highest in 20 years 

The good news: You're likely to be able to get seller concessions to bring the rate down into the 5s. It has become a buyer's market.