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

HELOC or Fixed Mortgage? I need your opinion!?

Well first what are the interest rates for each loan?

What are The terms for each loan (number of years you want the loans to run)?

What do you plan to do with the money?

With out that info I can tell you that a HELOC is normally Prime rate and adjustable. Currently Prime rate is 7.5% HELOC%26#039;s have the advatage of flexiblity, and the disadvatage of higher rates and shorter terms.

Fixed Rates will depend on where you live but they are currently right around 6%. If we assumed the same term of 30 years just for figures sake. It would take roughly 3 years to make up paying 3500 in fees. This also assumes that Prime interest wont go up or down.

So the question is do you want flexiblity or security? And how long will this loan be for? (If it is less than 3 years) it wont make that much diffrence. Also Do you think Prime interest will go up or down during the life of the loan?

I hope this has helped.

HELOC or Fixed Mortgage? I need your opinion!?

My suggestion is that unless you are taking this loan out to avoid bankruptcy or have a similar financial catastrophe don閳ユ獩 do it.