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Heloc--Can someone explain this...
I am pretty sure I know the answer but wanted to see what everyone else thought:
1.99% fixed APR for 2 years and Prime for life thereafter.
Would the Prime for Life be the interest rate that they are offering on their website (but it would be the one they have in 2 years of course)
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Posted 4/3/13 4:30 PM  |
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Prudential Douglas Elliman Real Estate
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Heloc--Can someone explain this...
Prime Rate is an establish rate between major banks. Its regulated and widely used in a variety of ways..
As of today, the prime rate is 3.25
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| Posted 4/3/13 4:44 PM |
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Re: Heloc--Can someone explain this...
Posted by BabyBoy
Prime Rate is an establish rate between major banks. Its regulated and widely used in a variety of ways..
As of today, the prime rate is 3.25
Ok so that would be the highest (if the 2 years was up today) it would be after that initial time?
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| Posted 4/3/13 4:50 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Heloc--Can someone explain this...
Posted by afternoondelight828
Posted by BabyBoy
Prime Rate is an establish rate between major banks. Its regulated and widely used in a variety of ways..
As of today, the prime rate is 3.25
Ok so that would be the highest (if the 2 years was up today) it would be after that initial time?
Whatever prime is, that is your rate.
If it goes down, it goes down and vice versa.
So every month, it could change. The month prior, would be the rate at the time the billing period starts.
It appears prime has held steady for the past 2 years or so
Message edited 4/3/2013 7:18:58 PM.
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| Posted 4/3/13 7:14 PM |
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Jenhos
Maeve
Member since 6/05 3273 total posts
Name:
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Re: Heloc--Can someone explain this...
The prime rate changes so it could continue to go up. I would confirm does that ongoing rate after the 2 years change every time prime does.
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| Posted 4/3/13 7:19 PM |
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Re: Heloc--Can someone explain this...
Thanks everyone
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| Posted 4/3/13 7:26 PM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: Heloc--Can someone explain this...
Posted by afternoondelight828
1.99% fixed APR for 2 years and Prime for life thereafter.
)
The way the above is written is that for year one and two you pay a rate of 1.99.
Year 3- end of loan you pay whatever the prime is. That can change and while it is low right now....5 years down the road it might not be.
It will change every month. SO I would decide if you want to take that gamble or if you think you can pay it off quickly then maybe.
I personally am not a gmabler like that.
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| Posted 4/4/13 9:38 AM |
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Re: Heloc--Can someone explain this...
Posted by alli3131
Posted by afternoondelight828
1.99% fixed APR for 2 years and Prime for life thereafter.
)
The way the above is written is that for year one and two you pay a rate of 1.99.
Year 3- end of loan you pay whatever the prime is. That can change and while it is low right now....5 years down the road it might not be.
It will change every month. SO I would decide if you want to take that gamble or if you think you can pay it off quickly then maybe.
I personally am not a gmabler like that.
Thanks so much.
Do you know the highest it could possibly go (interest rate wise)?
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| Posted 4/4/13 9:51 AM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Heloc--Can someone explain this...
Posted by afternoondelight828
Posted by alli3131
Posted by afternoondelight828
1.99% fixed APR for 2 years and Prime for life thereafter.
)
The way the above is written is that for year one and two you pay a rate of 1.99.
Year 3- end of loan you pay whatever the prime is. That can change and while it is low right now....5 years down the road it might not be.
It will change every month. SO I would decide if you want to take that gamble or if you think you can pay it off quickly then maybe.
I personally am not a gmabler like that.
Thanks so much.
Do you know the highest it could possibly go (interest rate wise)?
Please look at this history
Prime Rate History
Prime rate has not changed in some time. It can go as high as 20%. You see when it has changed, it changes from .25 to a full 1.0 point
Message edited 4/4/2013 10:11:13 AM.
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| Posted 4/4/13 10:09 AM |
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Re: Heloc--Can someone explain this...
Posted by BabyBoy
Posted by afternoondelight828
Posted by alli3131
Posted by afternoondelight828
1.99% fixed APR for 2 years and Prime for life thereafter.
)
The way the above is written is that for year one and two you pay a rate of 1.99.
Year 3- end of loan you pay whatever the prime is. That can change and while it is low right now....5 years down the road it might not be.
It will change every month. SO I would decide if you want to take that gamble or if you think you can pay it off quickly then maybe.
I personally am not a gmabler like that.
Thanks so much.
Do you know the highest it could possibly go (interest rate wise)?
Please look at this history
Prime Rate History
Prime rate has not changed in some time. It can go as high as 20%. You see when it has changed, it changes from .25 to a full 1.0 point
Thanks :)
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| Posted 4/4/13 10:42 AM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: Heloc--Can someone explain this...
Posted by alli3131
Posted by afternoondelight828
1.99% fixed APR for 2 years and Prime for life thereafter.
)
The way the above is written is that for year one and two you pay a rate of 1.99.
Year 3- end of loan you pay whatever the prime is. That can change and while it is low right now....5 years down the road it might not be.
It will change every month. SO I would decide if you want to take that gamble or if you think you can pay it off quickly then maybe.
I personally am not a gmabler like that.
I could never take this chance either. It wasn't that long ago interest rates were high if I'm not mistaken. Also wasn't these type of loans what got people in trouble. They had low interest rates then a few years later they went up and their mortgage was more than they could afford. (I could be completely wrong though  )
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| Posted 4/4/13 11:14 PM |
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Re: Heloc--Can someone explain this...
Posted by blu6385
Posted by alli3131
Posted by afternoondelight828
1.99% fixed APR for 2 years and Prime for life thereafter.
)
The way the above is written is that for year one and two you pay a rate of 1.99.
Year 3- end of loan you pay whatever the prime is. That can change and while it is low right now....5 years down the road it might not be.
It will change every month. SO I would decide if you want to take that gamble or if you think you can pay it off quickly then maybe.
I personally am not a gmabler like that.
I could never take this chance either. It wasn't that long ago interest rates were high if I'm not mistaken. Also wasn't these type of loans what got people in trouble. They had low interest rates then a few years later they went up and their mortgage was more than they could afford. (I could be completely wrong though )
The bank actually called me back and said that a Home Equity 1st Lien would be better for us so we are going for that 
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| Posted 4/5/13 3:47 PM |
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