Home Equity Loan 85% LTV

[guppy]

I'm trying to find a bank that will offer an 85% loan to value ratio on a home equity installment loan.

I currently have 1 lien on my house. This lien is due a 15 year home equity (3.99% int) that we just refinanced into 6 months ago up to 80% equity limit with provident.

We took out a personal loan (20k) to add a garage to the house and I'm looking to see if I can roll the personal loan into my home equity loan. Since Provident does not allow you to go past 80% I was wondering if anyone else knows of someone else who might? According to current home value, I would need 85% LTV ratio. Unfortunately we can't assume the value of the new garage since it won't be finished with the amount we pulled out for the personal loan (unfortunately that only covers foundation, drainage, etc). My husband is planning to complete the build himself over the course of the next year or two.

We are in talks with PNC right now but I was misquoted some numbers in my first phone call and it looks like their interest rate is actually way higher (5.99%) then what I was expecting! Any help would be appreciated!

[kork13]

I think you'll find that it's rare for a HEL/HELOC to allow you up to 85%. Max 80% is pretty standard across the industry. What's the rate on your personal loan? How much (in actual dollars) would moving it to a HEL even save you, especially considering the fees for yet another loan?

I'm inclined to say that your best choice will be to simply buckle down and pay it off. Trim your budget, focus on getting rid of the loan, and be rid of it.

[corn18]

0.25% over prime is the typical rate for an 80% LTV or less loan. That is 5% right now. Anything less than that is likely promotional (which is good). Over 80% LTV, and they usually charge more. That should calibrate your rate expectations.

I just got a HELOC from PenFed for 30% LTV and it's at 5%. They will go as high as 90% LTV. I had one through Navy Federal Credit Union for 90% LTV. So, maybe check with a local credit union.

[disneysteve]

It makes sense that higher than typical LTV would command a higher interest rate as the lender is taking on more risk.

That said, I agree with kork. It might be best to keep things the way they are and really hunker down and attack the personal loan.

[riverwed070707]

Agree with Corn - call your local credit unions. I have a HELOC with a local CU. I only took 80% because the rate was lower but the CU I used will do up to 100%.

[guppy]

Thanks for all the responses. I called PNC back and was told that the previous person hadn't quoted me the right interest rate. Turns out if we can get the house valued at what we think is quite reasonable given the last few comps, we might be able to move forward! 4% 14 year loan here I come!

[james.hendrickson]

I bank with PNC - they nickle and dime you to death. I agree with riverwed, why not see what your credit union is offering?

[bjl584]

Try Farmers National Bank
I'm a customer of theirs.
They have some home loan and HELOC options that allow you to pull 100% equity.

https://www.farmersnb.com/