- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
HELOC options in Louisiana?
Posted on 2/28/24 at 3:05 pm
Posted on 2/28/24 at 3:05 pm
Looking for advice on HELOC?
Looking to consolidate around $52,000 of debt. Have about $120K in equity in home. Would you guys go the HELOC route and who is offering the top rates? Thanks in advance.
Looking to consolidate around $52,000 of debt. Have about $120K in equity in home. Would you guys go the HELOC route and who is offering the top rates? Thanks in advance.
Posted on 2/28/24 at 3:13 pm to basiletiger
Few things from a banker:
-A HELOC is a floating rate line of credit that is secured with your home (secured). Some banks might offer a teaser rate, but that rate will go up and will be variable.
-If you truly want a home equity option (would not be my 1st or 2nd option) you probably want a Home equity loan, which gives you a fixed rate vs a floating rate (HELOC).
-You did not disclose what the $52k in debt was, so assuming it is cc debt then that is debt is probably unsecured. I would explore other options than securing a new loan with your home as collateral
-A HELOC is a floating rate line of credit that is secured with your home (secured). Some banks might offer a teaser rate, but that rate will go up and will be variable.
-If you truly want a home equity option (would not be my 1st or 2nd option) you probably want a Home equity loan, which gives you a fixed rate vs a floating rate (HELOC).
-You did not disclose what the $52k in debt was, so assuming it is cc debt then that is debt is probably unsecured. I would explore other options than securing a new loan with your home as collateral
Posted on 2/28/24 at 3:15 pm to PCBourbon
I appreciate the response. what other options?
Few balance transfer credit card loans, 401K loan, and a personal loan.
Few balance transfer credit card loans, 401K loan, and a personal loan.
Posted on 2/28/24 at 3:16 pm to basiletiger
Give me a breakdown of the loans (auto, cc, medical, etc)
How is your credit ?
How is your credit ?
Posted on 2/28/24 at 3:20 pm to PCBourbon
760 credit score:
17 years on the job.
200 plus income yearly
credit cards ($33,110)
personal loans ($12,588)
17 years on the job.
200 plus income yearly
credit cards ($33,110)
personal loans ($12,588)
Posted on 2/28/24 at 3:27 pm to basiletiger
Keep in mind I only commercial loans now, so not the best source on where to get unsecured personal loans. A quick google search is showing Lending tree with up to $50k unsecured loans. I would read the fine print and see how much you can qualify for. Keeping it unsecured will hurt your repayment terms, meaning you can only probably go 4-5 years in length vs longer with a home equity option.
I would still strongly suggest going an unsecured option. Keeping the term short will give you a high monthly note, but you want it like that. Keeping it short will hurt, but it should so you can get rid of it quicker.
If you don't quality for the full amount then consider refinancing whatever has the worst terms (higher interest rate, maturing soon, etc).
Good luck
I would still strongly suggest going an unsecured option. Keeping the term short will give you a high monthly note, but you want it like that. Keeping it short will hurt, but it should so you can get rid of it quicker.
If you don't quality for the full amount then consider refinancing whatever has the worst terms (higher interest rate, maturing soon, etc).
Good luck
Posted on 2/28/24 at 3:47 pm to basiletiger
The benefit of a HELOC is that you can re-use the available credit after you pay the balance down.
Outside of that benefit, the earlier response about a fixed rate second is worthy of consideration.
Is your goal to reduce interest rates?
Open up monthly cash flow?
Both?
All of that goes into consideration when reviewing your options.
Unlike the other response, I'm not afraid of securing debt against the home. It generally permits you to lower the interest rate AND free up monthly cash flow.
If you were planning on paying back the credit cards and installments, then I'm sure you will pay back the 2nd lien (with more favorable terms).
As for who can offer options.
1) call your first mortgage company and ask them. They already have 1st lien position and may be able to do a no close HELOC.
2) call your local bank and a local credit union. Credit unions are typically really good at savings accounts. Or really good at loans. Rarely both at the same time. So avoid calling the credit unions with the highest savings account interest rates.
3) call a mortgage company (Rocket Mortgage. US Bank. Lending Tree).
It has been a long time since I looked. But local banks/credit unions used to have the best terms for a 2nd mortgage.
A mortgage compay/broker would be the next option if approval at the local bank level doesn't happen (terms are great, but they are also conservative in risk).
Outside of that benefit, the earlier response about a fixed rate second is worthy of consideration.
Is your goal to reduce interest rates?
Open up monthly cash flow?
Both?
All of that goes into consideration when reviewing your options.
Unlike the other response, I'm not afraid of securing debt against the home. It generally permits you to lower the interest rate AND free up monthly cash flow.
If you were planning on paying back the credit cards and installments, then I'm sure you will pay back the 2nd lien (with more favorable terms).
As for who can offer options.
1) call your first mortgage company and ask them. They already have 1st lien position and may be able to do a no close HELOC.
2) call your local bank and a local credit union. Credit unions are typically really good at savings accounts. Or really good at loans. Rarely both at the same time. So avoid calling the credit unions with the highest savings account interest rates.
3) call a mortgage company (Rocket Mortgage. US Bank. Lending Tree).
It has been a long time since I looked. But local banks/credit unions used to have the best terms for a 2nd mortgage.
A mortgage compay/broker would be the next option if approval at the local bank level doesn't happen (terms are great, but they are also conservative in risk).
Posted on 2/28/24 at 4:02 pm to basiletiger
I would not want to trade unsecured debt for secured debt. Not knowing anything else about your financial condition or spending habits, I'll say that with 200k+ a year in income, you should be able to bang out those debts fairly quickly if you cut back on your discretionary spending and dedicate yourself to paying off the debt. Not that I'm fully endorsing Dave Ramsey's methods, but the debt snowball works. Make minimum payments on everything but the smallest debt and pile extra money onto the smallest debt until its paid off and move on from there to the next smallest debt and so on. With each one you pay off, that frees up more money to attack the next one. But again, all this is for naught if you don't get your discretionary spending under control.
Posted on 2/28/24 at 4:04 pm to Chad504boy
My heloc is through regions.
I've never used it. It is an emergency policy. It is actually my second through them (after 10 years, I lost the heloc and only a fixed installment remains).
Edit
The debt snowball does work.
It works even faster if you reduce your interest rates onto secured debt.
I've never used it. It is an emergency policy. It is actually my second through them (after 10 years, I lost the heloc and only a fixed installment remains).
Edit
The debt snowball does work.
It works even faster if you reduce your interest rates onto secured debt.
This post was edited on 2/28/24 at 4:05 pm
Posted on 2/28/24 at 9:54 pm to meansonny
quote:
Credit unions are typically really good at savings accounts. Or really good at loans. Rarely both at the same time. So avoid calling the credit unions with the highest savings account interest rates.
This is not accurate. Maybe in Georgia, not Louisiana.
Posted on 2/29/24 at 7:46 am to basiletiger
I have 250k heloc with Hancock Whitney. Got it in 2020, introductory rate was 5.9% for 6 months Or something like that. It’s currently sitting at 9%.
It’s good if you need fast cash with no questions asked. Pay it back quick, because 9% adds up quick.
It’s good if you need fast cash with no questions asked. Pay it back quick, because 9% adds up quick.
Posted on 2/29/24 at 8:59 am to jfw3535
quote:
I would not want to trade unsecured debt for secured debt. Not knowing anything else about your financial condition or spending habits, I'll say that with 200k+ a year in income, you should be able to bang out those debts fairly quickly if you cut back on your discretionary spending and dedicate yourself to paying off the debt. Not that I'm fully endorsing Dave Ramsey's methods, but the debt snowball works. Make minimum payments on everything but the smallest debt and pile extra money onto the smallest debt until its paid off and move on from there to the next smallest debt and so on. With each one you pay off, that frees up more money to attack the next one. But again, all this is for naught if you don't get your discretionary spending under control.
I second this theory. Making $200k, you should be able to use this method to quickly pay off debt without tying up your home as collateral.
Posted on 2/29/24 at 9:01 am to HeartAttackTiger
quote:
I second this theory. Making $200k, you should be able to use this method to quickly pay off debt without tying up your home as collateral.
meh. Having a HELOC is good regardless. If he's able to pay off the debt much quicker than what cc interest rates generate and then you still have a line to draw from when needed.
Posted on 2/29/24 at 11:20 am to Chad504boy
quote:
meh. Having a HELOC is good regardless. If he's able to pay off the debt much quicker than what cc interest rates generate and then you still have a line to draw from when needed.
I would argue based on his income and various debts he has (including >$30k C.C.) the last thing he needs is a "quick solution" to this moving it all to a HELOC opening him back up to run up C.C. etc again and now he has a huge HELOC he can continue to tap into which just seems like a poor decision for someone who put themselves where they are even with a large shovel. I.e. putting a gambler in a high stakes casino or something.
This guy needs to buckle down and just come up with a plan and pay this stuff off as quickly as possible. IF that involves some 0% balance transfer CC over 15-18 months that's fine to save him the interest there on the C.C. at least but thats the first thing I'd tackle with the interest rates on those being sky high probably.
With >$200k income and about $33k on c.c. he should be able to pay those completely off in the promotional 0% 15-18 month time period no problem. Over 18 months thats less than $1,900 a month after factoring in a 3% transfer fee on that $33k balance. Once he has that out the way, the rest of the debt should vaporize pretty quick with that out of the way and learning to throw an extra $1,900 on the c.c. debt after a year and a half.
This post was edited on 2/29/24 at 11:31 am
Popular
Back to top
Follow TigerDroppings for LSU Football News