I've had a second mortgage prior and payed it off without issue. I believe I was approved and done in less than a week. I am looking to get another through a different bank and I was told it will take about a month for everything to clear. It seems like a long time for the small amount I am needing. I probably should have gone with a personal loan but the interest rates were higher. I am only have way through the process now.

I had my mortgage through my credit union and when I took a home equity loan it was done in a day or 2.

Do they need an appraisal? If so could take a few weeks. If not shouldn’t take longer than a week.

If memory serves mine was a week or two from start to finish. A month ETA is probably just the bank building in a buffer.

HE Loan or line of credit? Our HELOC was done in about 30 days given it required a current appraisal be completed.

Supposedly going through the underwriter now and then possibly an appraisal. I was going for a Home Equity Loan, as I was wanting a fixed % rate as the HELOC had an adjustable and was concerned that interest rates might increase past the fixed rate I am getting. Thanks for the replies gents.

It's probably because of the high volume now as people are scrambling to get interest rates locked before they go up as expected.

quote:

Originally posted by bigdeal:
HE Loan or line of credit? Our HELOC was done in about 30 days given it required a current appraisal be completed.

+1. I took out a fixed rate HE loan last May to eliminate my wife's MBA loan. Took roughly 30 days. I was told part of the wait time is due to tighter lending standards after the crash of 2007/08. Also, we live in a rural/mountain community. The bank uses some type of online/instant appraisal for houses. My banker told me these almost never come back correct for our area, or are too low. Sure enough, she ran my address while I was there and it was way low. We had to do a full appraisal. BTW, I had $150k - $200k in equity in my house after the "real" appraisal was done.

quote:

Originally posted by maxwayne:
I had my mortgage through my credit union and when I took a home equity loan it was done in a day or 2.

It was about a week for us but we weren't in any rush.

1967GOAT-That is a lot of equity to miss out on. The loan/bank checked mine on Zillow,which I know is not a great example of what homes go for but they are close.

We got a HE loan last fall and it took about a month due to tighter restrictions and the fact that they required an appraisal.

Well, I had a 20 year or more history with my credit union and an extremely high credit rating when I obtained mine. They advised that up to a certain amount it was quick and easy with no assessment needed. IIRC the breaking point was about 2/3 of the assessed value of the home for property tax purposes and that was much more than I needed.
Higher line of credit would take longer they advised.

I assume the bank pays for the appraisal,am I correct?

My bank offers 2 programs. Borrower pays all closing costs including appraisal and you get a better margin vs Prime. Or bank pays all costs and borrkower gets a higher margin vs prime. So borowees pay a known amount now or pays for the life of the loan in form of a higher rate. If you are just securing the heloc “just in case” then choose the no cost option. If you intend to max it out and keep a balance for a long while it’s probly better to pay the costs up front. But do the math

Also. Consult you CPA about the Change in the tax law last year affected heloc interest deductions.

Better read the new tax law. HE loan interest won't be deductible mortgage interest except in specific circumstances.