Can I get a HELOC prime or a HELOC minus, and is HELOC always based on the prime rate?


The rates of home equity lines of credit (HELOCs) are most often based on the Prime rate. A HELOC rate that is Prime or Prime minus is often offered either to good credit customers, or as introductory HELOC rate.

If your HELOC is for less than 80% loan to value, you will be getting a HELOC prime, or a HELOC prime minus. However, if you are getting a HELOC prime plus the margin, you are probably applying for 100% or over LTV.

If you could lock a HELOC prime rate minus, this would be a very good HELOC.

A HELOC prime or prime minus is often offered as a no cost HELOC - all loan related fees will be paid by the lender. Usually, prepayment penalties only apply when you cancel the HELOC within 3 years and not if your pay off the loan in 3 years.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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