HELOC or Fixed Mortgage? I need your opinion!?
With so many loan options out there I am undecided on what type of loan is best fitting for my situation. I have talked to numerous lenders but they are competing for my business so I am having a hard time gaining an unbiased opionion regarding what avenue I should take.
My situation is this: I have built a brand new house out my pocket. I have no mortgage or leins etc. on the land or home. The vaule of the home is roughly 310K. I only want a loan for about 115K. I plan on making a big draw right of the bat if I go the HELOC route. The institution I plan on using if I go this way has no closing, lender fees and no points are raised once I lock in my rate. I have other lenders telling me that I should get a regular fixed rate mortgage for the 115K. Of course then I have the closing costs, lenders fee etc, but I am looking for the best deal. Which loan makes the most sense for my situation? BTW, my credit score is 770