Re: Lending rate question
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I am buying a house 70/25/5 with a 25% HELOC that is >100K. Credit is excellent, income easily supports the purchase, full doc, first is a 15-year fixed. They offered 7.25% fixed "5-year" or prime minus one-half on the HELOC. Is that a decent rate? If so, which one is better?
Thanks.
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They're offering prime minus one-half? You must have very good credit. That's a good deal, as long as there are no big hidden fees. Also, that might be an introductory or teaser rate, that goes up after 6 months or a year. Be sure to check, but if there's no catch, it's a great rate.
The 7.25% may be even better. Prime is currently 8.25%. What does it go to after the 5 years are up? Do you expect to borrow the full 25% immediately, and how long until you pay it off?
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