re: SBLOC for new home

I did this a couple years back and now the rate is about 6.95% so I am paying the balance down instead of letting it accumulate. The rate I negotiated is 1.55% plus SOFR which at the time early 2022 was .05% but is now up to 5.4%. You can negotiate rates. Best published rate I found was Interactive Brokers and I got Schwab to match it. Seemed like a great idea when mortgages were hitting 4% and I could borrow at 1.6% so I took extra and borrowed less on mortgage but that changed as SOFR went up. I couldnt find a good source on what to expect for SOFR rates as Fed rates rise. Initially SOFR stayed low but its been steadily climbing.

Are you sure the rate you found is flat 2-3% ? I'd be surprised if thats not just base before +SOFR. I havent seen one of these loans that's a fixed rate.

NY Fed.org SOFR Rate chart