HELOC Loan Comparison Sheet
| Item to Consider | Example | Lender 1 | Lender 2 | Lender 3 | |
|---|---|---|---|---|---|
| A. Determining the Amount You Can Borrow: | |||||
| 1. Estimated Market Value: | 150,000 | ||||
| 2. Loan-to-Value Ratio (LTV): | 80% | ||||
| 3. Percentage of Market Value: | 120,000 | ||||
| 4. Less: Existing Mortgage Debt: | -100,000 | ||||
| 5. Equals: Available Equity | 20,000 | ||||
| B. Understand HELOC Loan Fees: | |||||
| 1. Potential Fees & Costs: | |||||
| Application/Origination Fee | |||||
| Appraisal Fee | |||||
| Account Maintenance Fee | |||||
| Title Work | |||||
| Title Recording Fee | |||||
| Document Shipping Fee | |||||
| Notary Fee | |||||
| Points | |||||
| Early Closure Fee | |||||
| Lien Release Fee | |||||
| Local Mortgage Taxes | |||||
| Total Fees & Costs | |||||
| C. Understand HELOC Loan Interest Rate Features: | |||||
| 1. Initial Teaser Interest Rate | 3.50% | ||||
| # Months Teaser Rate Applies | 6 mos | ||||
| 2. Base Index Definition | Prime Rate | ||||
| 3. Current Base Index Value | 5.00% | ||||
| 4. Plus 0r Minus: Margin Adjustment to Base Index | -0.25% | ||||
| 5. Equals: Current HELOC Loan Rate | 4.75% | ||||
| 6. Frequency of Rate Adjustments | Monthly | ||||
| 7. Interest Rate Cap | 18.00% | ||||
| 8. Interest Rate Floor Cap | None | ||||
| D. Understand HELOC Loan Draw Features: | |||||
| 1. Draw Period | 120 months | ||||
| 2. Required Initial Draw? | None | ||||
| Amount | |||||
| 3. Monthly or Annual Limit on Number of Draws? | None | ||||
| Terms | |||||
| 4. Minimum Draw Amount | |||||
| 5. Method for Drawing Funds (Checkbook, Debit Card, etc.) | Checkbook | ||||
| 6. Transaction Fees (e.g. per-check charges, etc.) | None | ||||
| E. Understand HELOC Loan Repayment Terms: | |||||
| 1. Required Payment During Draw Period | |||||
| Interest-Only Payments Required? | Yes | ||||
| Interest and Principal Payment Required? | |||||
| Fully Amortizing Payments Required? | |||||
| 2. Required Payment When Draw Period Ends | |||||
| Balloon Payment? Describe. | |||||
| Renewal/Refinancing Available through Lender? | |||||
| Fully Amortizing Payments Required? Describe | |||||
| 3. Prepay Penalty - Describe | None | ||||
| F. Additional Questions to Ask: | |||||
| 1. Under what conditions can lender demand full repayment of loan? | |||||
| 2. Can HELOC loan be tied to regular checking account for overdraft protection? | |||||