How to Find the Best Rates on HELOCs
Updated from 9:23 a.m. EDT
TheStreet.com regularly looks into available rates on a variety of banking products. This article's focus is on home-equity lines of credit.
Countrywide (CFC)froze 122,000 home-equity lines of credit in January. After tightening its underwriting standards earlier this year for new HELOCs, Chase (JPM) started sending letters to "a relatively small group of customers" modifying current lines of credit, a Chase representative said. And other banks may be reviewing their loans.
But if you manage to convince your bank to let you use your house as a piggy bank, at least you probably won't be paying more than before.
The vast majority of HELOCs are still tied to the prime rate, as published by The Wall Street Journal, and margins aren't growing significantly, says Stuart Feldstein, president of SMR Research, a business and market research firm.But even with plummeting home prices and banks tightening underwriting standards, not everyone is bearish about prospects for home-equity loans for the year. "We have a prime rate that's falling like a stone, and the differential between home equity loan prices and credit card prices keeps widening," Feldstein says. "This creates really powerful incentives to use home equity loans, if you can get it, to pay off credit-card debt or
- Internet Bank MetLife Bank (MET), National Association is offering a $26,000+ HELOC at 5% in several states.
- In New York, Internet Bank State Farm Bank is offering a $10,000 to $500,000 HELOC at 5.25%.
- In New York, Citizen's Bank, National Association is offering a $50,000+HELOC at 5.49%.
- In Illinois, MB Financial Bank, National Association is offering a $100,000+ HELOC at 4.950%.
- In Illinois, Fifth Third Bank (FITB)is offering a $5,000 to $300,000 HELOC at 4.99%.
- In California, County Bankis offering a $10,000 to $500,000 HELOC at 5%.
- In California, Wachovia Bank, National Association (WB) is offering a $100,000 to $249,999 HELOC at 5.25%.
- In Texas, Compass Bank is offering a $35,000+ HELOC at 5%.
- In Texas, Internet Bank Comerica is offering a $50,000 HELOC at 5.25%.
- In Florida, Wachovia Bank, National Association is offering a $100,000 to $249,999 HELOC at 4.75%.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV