Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Mark Waterman from Great Western Bank. Listen in as Mark explains HELOC, and the benefits it may have to you as a homeowner. You can reach him at 605.627.0602 or Mark.Waterman@GreatWesternBank.com His office is located at 1302 6th St., Brookings SD 57006 or on the web at www.GreatWesternBank.com
Home Equity Line of Credit
- Good morning everybody. Shane here, from the Brookings Home Team, powered by Century 21, 8:15 right there on the dot. Got Mark Waterman here from Great Western Bank. We're gonna talk a little bit, get a mortgage tip in here this morning. But before we do that, please remember as you jump on here, let us know. Give us a heart, a thumbs-up. If you have any questions, let us know that too. I'll have Mark's information on the top, on the bottom, or on the sides, wherever your device allows you to see that. And feel free to reach out to him at any time, and myself as well. So with that being said, Monday morning, Mark. What do you got?
- Yeah, appreciate it. Monday Morning Mortgage Tip. I wanted to talk about home equity line of credit, or better known as a HELOC. So, either during the home buying process, or any time after the home buying process, you know, you couldn't be interested in getting a home equity line of credit. If you're getting it during the initial home buying process, we do have to take it into consideration, for your debt to income, to make sure that you can qualify for it. But it can be a great tool if you're putting, if you're putting money down. Majority of home equity line of credits, you can go up to 90% of the appraised value. And I guess the advantageous thing about it is that it's money you're already getting qualified for, and it's, majority of banks, it's a five-year product. Here at Great Western, we do have a 10-year HELOC option. And I guess the pros to that is that you don't have to rewrite it as often. But basically, it's money that you can use to make improvements to the home. You know, most of the time when you buy a house, there's always a couple things that maybe weren't exactly how you wanted it, so if you wanted to make those changes, you could use those dollars to do so. It's a heck of a lot cheaper than putting it on a 20% interest credit card or something along those lines. So, I guess it's using, it operates like your credit card, but it's just backed by your house at a much lower interest rate. I think the majority of the home equities are in that five to six percent range, and then there's variable and fixed options as well. But it's kind of just using your own money, you know, it's using the equity in your home to potentially do other things with it, or just have it for emergency purposes. So, if you get it immediately after you buy the house, very few fees, since you already have an appraisal from the first mortgage that you just got. You know, you just got the appraisal from when you bought the house, so you can use that. I guess, I always have the conversation with my customers when we close, just to keep it, keep their options open. Because of the fact that its a five or 10-year product, you never know, so for emergency purposes, it could be a good thing too.
- And one of the things I don't think you mentioned too, is sometimes that interest is tax-deductible for you too, so.
- Correct.
- You can combine your credit cards into and pay those off that way. Go from a 20% interest rate to a five percent, and possible have a tax reduction.
- Absolutely.
- Or a tax, yeah, reduction on there too. Buy a car, so yeah. I had one, and loved it. It was a revolving credit line, and yeah, you could put some big-ticket items on there, and be able to write them off, so.
- Yeah.
- Possibly.
- Yep.
- Talk to your tax advisor.
- Tax person for sure.
- We're not accountants.
- Correct.
- So all right, and you said Great Western has a product--
- So we have a 10-year yeah, but yeah, a 10-year product. Typically, a majority of banks have five-year products, but again, that's one of the advantages to getting it at the same time. You know, you already getting the appraisal, for buying the house. It's a cheap time to at least obtain that credit. Doesn't cost you anything, until you advance those funds. So if you have a $20,000 home equity line of credit, and you advance 5,000, you're only getting charged interest on that 5,000. So, just like your credit card.
- Great stuff, great stuff. All right, like I said, if you have any questions for Mark, let him know. Reach out to him there, via phone, email, or stop in here at Great Western. Thank you for watching. That is this week's Monday Morning Mortgage Tip. We didn't have too many in the month of October. A lot of of traveling and stuff, I think going on.
- Yeah.
- So only a couple of those, but hopefully we're back to it here. I think there is one Monday in November that we will not be doing it but, and actually that might be next Monday, now that I think about it. I'm not sure. Anyway, we'll be back as soon as we can.
- Oh, like Veteran's Day maybe?
- Yeah, yeah.
- Yep.
- Another holiday on that Monday, but we're getting ready for Thanksgiving and Christmas guys. We got some exciting stuff coming up, here at the Brookings Home Team, so keep your eyes open. Thanks again for watching. Have a great week, we'll talk to you later.
- Thank you.
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