I’m considering getting a HELOC, but it would be very short term, so I am only interested in lenders offering teaser rates. For instance, PenFed’s HELOC terms are 10 year draw interest only, 20 year principal & interest repayment, but the first 6 months, the interest is only .99%. There are better options out there if I were to pay for the whole 30 years, but since I know I won’t be doing that, I’m more interested in the interest only for 10 years HELOCs, and even more interested in the ones with teaser rates. Unfortunately, I can find a good way to search specifically for lenders that offer short term teaser rates. Does anyone on here know of a good site that compiles them or know of anyone better than PenFed?
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If you only need/want a short term loan does a HELOC actually make sense, considering the fixed closing costs?
So far, the only lenders I’ve talked to have quoted zero closing costs.
Would credit card teaser rates work for your use case? I recently opened a Wells Fargo Active Cash Visa and a BofA Susan G. Komen Cash Rewards Visa (both decent cashback cards in their own right–2% for WF and 1-2-3% for BofA) and obtained >$50k of 0% APR for more than a year. It only works for new purchases (or MS) though; there’s an additional charge for balance transfers.