Howdy,

I wanted to see if anyone here could give me some adive or point me in the right direction as to what my best option would be for my current situation. I'm recently divorced and need to access some of the equity in my home in order to "pay off" my Ex without having to sell my home. The details:

• Need $100K
• Home value - $595K (appraisal as of 6/29/23)
• Outstanding Mortgage - $323K
• Current Equity - $272K
• I am the only person on the mortgage (Ex is not so no refi required)
• Self employed - LLC so no W2s for me
• Have some cash on hand but would prefer to hang on to that for bills/expenses due to up and down nature of business (construction)

Would a HELOC be my best bet? If so, where do I start? If not, what would be a better option?

Thank y'all!

I'm always curious on HELOC rates/deals too but last I heard they're very high.

If you're interested in talking HELOC my email is on my profile. We currently are running a special with 6.74% for the first year. That promo runs through October 28.

I've seen rates in the 9.5-10% range in the market right now.

Email sent.

Damn - that's a great deal for the short term.

I'd say HELOC sounds like the best bet with the details given. But, yes, the rates will be high.

But if you did a cash out refi you aren't eligible for a HELOC, fyi.

jja79 said:

---

If you're interested in talking HELOC my email is on my profile. We currently are running a special with 6.74% for the first year. That promo runs through October 28.

I've seen rates in the 9.5-10% range in the market right now.

---

My question isn't specifically for jja79, but what sort of fees/additional expenses are there with a HELOC loan?

Lenders typically have different thresholds for no cost HELOC loans. That might range from $250-400K and anything below that would have no closing costs unless there is a full appraisal required. Lender pays title fees. Interest only accrues on money drawn. I have had a lot of clients who put a HELOC in place as a backstop so to speak in the event they need quick access to cash. If no full appraisal is required there would be no cost to the borrower to put the line in place.

What is the thought process for the lender side in a no-cost deal like that? With asset as collateral, is it just a very low risk way to build a business relationship with high net worth individuals?

Not just high net worth but yes, it's a way to create other opportunities through a product that serves the need of a lot of people. I have a client using it now to fund the down payment on another house. They're planning to keep the current paid off house as a rental.

jja79 said:

---

If you're interested in talking HELOC my email is on my profile. We currently are running a special with 6.74% for the first year. That promo runs through October 28.

I've seen rates in the 9.5-10% range in the market right now.

---

This is a great deal on a HELOC, right now. Most are significantly higher than that.

Left out the key but of info - what is your current rate?

Current rate is 2.8%

Sorry about the divorce OP, hope you're doing alright

All good man. Dealt with crazy(literally/medically) for 13 years before she finally crossed the red line. Relieved & at peace, more than anything, now…

Well that's good at least. Godspeed moving forward and hope it all works out