Secured Line of Credit - What is a good rate?
What is a good rate for a secured line of credit these days?
Could I get something at Prime, or P-0.5?
I dont want to pay lots of money to get it setup either. I already have an unsecured line of credit at P+3% which I would get rid of if I could get secured line of credit setup for under $200 if not free.
Originally Posted by Eclectic12
Are there reports of this happening?
My HELOC was setup when I started the mortgage and has been running a couple of years after the mortgage was retired. It has been steady until the prime rate was dropped, which meant my HELOC rate dropped as well.
Maybe it was because I went through a mortgage broker. but I explicitly told the broker I had no plans for it. It wasn't until about a year and a half later that I used it.
I have no idea if they
increase the rates very often, I am just trying to think like a banker. I know they all did it during the credit crisis. Most HELOCs were at prime and most banks moved them to prime plus 1% in 2009. In this case, once they have the 1st mortgage, the ability for other banks to compete on the HELOC is diminished. Not eliminated but diminished, since the new bank needs to take a 2nd position to the bank with the 1st mortgage.
The broker is different then talking directly to a banker. If you want the bank to pay set up fees and house appraisal costs, they have to believe that there is something in it for the bank, other then just an expense. A LOC that is never used, is of no value to them. They would have lots of those types of LOC on the books, so I suggest the OP give the impression that they will be borrowing on it immediately.
None of this might matter, but it can't hurt. All just my opinion.