What should be easier to qualify for, HELOC or 1st Mortgage?

I own a house outright (no mortgages) and would like to pull money out. I would like to utilize a HELOC so that I don%26#039;t spend interest on money unless I am using it. My mortgage broker told me that the bank will only approve a 1st Mortgage in the specific amount, not a HELOC. So why would it make a difference whether I am pulling all the money out at once or gradually, when needed? Risk/rate wise, wouldn%26#039;t the bank want me to only use money slowly? Are they just wanting me to have to pay more interest when I really don%26#039;t have to?

What should be easier to qualify for, HELOC or 1st Mortgage?emergency loan

I would got both HELOC and a 1st mortgage, then I would take all the cash and put it on red, no black, no red, black, red. Then payback the principal, then use the profit to throw a party at said house and buy lots of blow and invite lots of strippers over. And maybe Lindsay Lohan. I heard she%26#039;s into stuff like that. Good Luck on all your future endeavors....Good question by the way.

What should be easier to qualify for, HELOC or 1st Mortgage? loan

HELOC for sure. No closing costs. Do lendingtree for the best deal.|||HELOC!!! You can lock in a fixed rate on a large sum of money if you need to. and if you don%26#039;t need all that $$ then your not paying it back. Don%26#039;t take a full mort. on your home if you don%26#039;t need it. Someday you might get in a rut and cant pay it and lose your home. Don%26#039;t get the debit card that comes with the HELOC! It just makes it easier to spend! you can also combine credit card debts etc...into the HELOC!|||Difference between Heloc and 1st is:

HELOC, is an interest only loan and adjust on a daily basis. You need decent credit to have an HELOC. Yes you only pay for what you pull out. You pay prime (what ever the current rate is) plus =/- the margin, depending on your credit. Make sure you know what your draw period is. Certain HELOCS you have a certain amount of time to pull the cash out.

1st, is a fixed rate, you can also pay interest only if you choose. You would never have to worry about the rate fluctuating. And if you don%26#039;t need it all, pay it back. It will do wonders for your credit. Great thing you have taxable write off.

Just a little insight.

ML

http://www.myfinancialcorner.com|||Are the rates significantly different? Do you need to pay for any appraisals or transaction fees with the HELOC? I%26#039;m certain that the closing costs on a new mortgage would make any insignificant interest rate differences or a $400 appraisal not enough to go with the mortgage.

I%26#039;d try another lender, this one doesn%26#039;t seem to be giving you good advice. I%26#039;d want to know why the bank would only approve the mortgage. It would have to be a very compelling reason.|||You need to find a different lender. He/she is not obviously listening to your ultimate scenario and desires. There%26#039;s nothing wrong explaining to you why he feels a first mortgage fixed rate may be better, but ulitmately, it should be your choice. You can do a heloc as first. And yes, loan officer%26#039;s don%26#039;t always make as much on them as on a first, but like I said, a good mortgage %26quot;consultant%26quot; would not base their decision on this. Next thing he%26#039;d tell you is an option arm is best. Run! The cheapest helocs are done through big banks. They can usually do them at no cost. BUT, the most important thing to look for on the HELOC is what the margin is. Sometimes big banks may charge you a higher margin then a broker can get. So sometimes paying for some costs may be more beneficial to you. Also you want to check and see if they do allow a fixed rate option if you take a large amount out. I don%26#039;t know if you are aware that the interest rate on HELOCS are adjustable and adjust whenever the prime interest rate adjusts. So if you think you may take a large amount out, sometimes they can offer to lock the rate in for you.

I hope this helps some. If you%26#039;re in CA I could provide a free quote to you.

Good luck.|||Sadly, it may just be that your broker is saying this because he is being greedy.

Though depending on the size of the loan you are seeking, some banks might not issue HELOC%26#039;s large enough.

Citi, Chase, BofA, Wells, all have good HELOC%26#039;s available, in first lien position, of almost any size if you%26#039;re at the right loan-to-value.

Go direct, and they may very well cover some or all of your closing costs too.

Ditch your broker. Some would help you anyway, even if they made little to nothing. This ain%26#039;t one of them.