How to calculate monthly HELOC payments?
My lender is proposing a 3yr $50k HELOC (2nd loan in an 80/10/10) with $262 monthly payments. I'm unable to reconcile these payments with the total loan amount if paid within 3 years (i.e. $262*36 months < $50k). Are these interest only payments? What are the typical payments on these loans? (loan/total # months)+interest? by rach32_273_647 from Walnut Creek, California. Jul 18th 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
It really depends on the terms of your note.. Some are interest only for the first 10 years and amortized over the next 20.. Some are fully amortizing from day one.. it also depends on which index the rate is tied to, and how often it can change.. Also, my guess is that it's not a HELOC, but rather a 2nd mortgage.. HELOC's are an open ended loan meaning you can continue to tap into the equity as you make payments.. A 2nd is a closed end loan that is fully amortizing from day one.. A better option is to do an upfront MI premium. These types of mortgages usually have much more favorable terms, and works out to be a lower monthly payment than doing a 2nd.. It's sad your having to go to an internet post to find the answer to this question.. Your mortgage loan officer should have provided this information to you right up front and explained it.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Ask our community a question.
Get an answer
Related Questions
