You never had Prop 10 enforced on you, so how did you know?
yeah I know, Iâm just saying itâs hard to compare them IMO
If you want fixed rate thatâs already decided for you. If not they are mostly a wash, although with HELOC you can only pay them interests. That can be good or bad. You have more flexibility but you may not have the discipline to actually pay it down.
see next update
You may say so, but unless I verify, I do not really believe in it.
The rules are changed long back before 2018 that HELOC or ARM less than or equal to 5 year is treated differently equating to 30 year fixed formula considering conservatively.
I have checked this at least 5 lenders, bofa, citi, union bank, wfc,techcuâŚetc, every one told them same.
Unless I verify physically or someone broker or banker vouches change it logic, I donât believe in it.
I canât force you to believe me. You need to open your mind 
How can they justify a 2000 monthly debt service when the balance of the 200k heloc is zero?! Thatâs discrimination against people who have a heloc. I like people who have zero balanced heloc since they have more financial flexibility. Is there a lending equality issue here?
They were doing this to me once, thatâs when I apply for the Heloc. Once Heloc is opened, it doesnât affect me anymore. Maybe people were confused about this difference.
Everyone has different rules for jumbo mortgages since Freddie and Fannie donât buy them. Thatâs why some jumbo programs count RSU income and others do not.
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First point, I am not a loan agent to defend the mortgage companiesâ ask. This is prevailing rule since 2018, check with bank of amreica, wellsfargo, union bank âŚetc.
second, reg âThatâs discrimination against people who have a helocâ: If it is, we would have seen class action lawsuit. Every contract/mortgage is reviewed by lenderâs lawyer - at least once - by underwriting companies. They would have clearly checked the discrimination.
https://socketsite.com/wp-content/uploads/2019/03/Mortgage-Market-Survey-03-28-19.png
the current 30-year rate is now 38 basis points below its mark at the same time last year, nearly a full percentage point below the 7-year high it hit this past November, and the lowest in 14 months, according to Freddie Macâs latest Mortgage Market Survey data.
https://socketsite.com/archives/2019/03/mortgage-rates-dramatically-drop-inversion-increases.html
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If your Bank/Lender is counting available HELOC credit in your debt to income ratios, itâs time to switch mortgage companies. The single greatest confusing thing for Underwriters are Student Loans. If the Student Loan payment isnât listed on the credit report, or if itâs deferred, lenders use an extraordinarily high payment calculator since no other payment information is available.
When applying for a mortgage, find out first what your Student Loan data says on the report. If information is missing, get it, then update the credit report. This preening and cleaning of your credit profile will pay big dividends as long as you start with credit first, not rate comparing. What good is a low rate if you canât close?
Thanks for reading.
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Some helpful stuff for readers as many begin the refinance shopping process. There are plenty of wild sounding offers out there, and some want to post their new sexy rate for comparison purposes - as if itâs a beauty contest or something. A borrowers rate should be viewed in context. Itâs always been possible to push a rate way, way, WAY down, depending on important factors that arenât always clearly framed. Here are a few, in order of importance:
Letâs assume here that weâre talking about an ARM loan, not a fixed rate. The same kind of pricing impacts apply no matter the underlying type of mortgage.
FICO - Lenders work in 20 point ranges. If your score is 761, a rate might be 3.250. With a 781 FICO, the rate might be 3.125 and with an 801 score the rate might start at 3.00. For discussion purposes, letâs use the middle FICO of 781 and a 3.125 rate.
LTV - Most of the best price products seen on line have a 75% Loan To Value or lower starting point. That 781 FICO, at 80% Loan To Value might rise to a 3.250 rate. At 70% the rate might drop back to 3.125. At 60%, perhaps the rate drops to 2.875.
Relationship. Got cash or securities to move? Big Banksâs like the sound of that! Some scale their rate benefits at $100k, but the majority of banks will move the needle at $250k, $500k, $750k, and $1m.
If the starting rate at 781 FICO, and at 60% LTV is 2.875, and you move $750k to a bank, now you might see 2.50 or better. These funds arenât held hostage. Itâs possible to deposit, close, and move back, but thatâs kind of a hassle. The bank holding the funds might have incentives to keep the funds with them so consider leaving them for a bit if the benefit makes sense.
Relationship. Now used it in a different context. Large companies with payroll services managed through some banks may have additional discounts offered to their employees for purchase or refinance loans. Not every company has a relationship based discount option, but itâs a good idea to ask. If youâre with a brand name silicon valley company, itâs highly likely a discount exists.
Loan Size. Some borrowers took out $460,000 loans last year and enjoyed âJumbo Pricingâ. The Conforming Loan Limit was approximately $450k so Big Bankâs allow these loans to fund using portfolio pricing. Today, with the Standard Conforming Loan limit reaching $484k now, a $460k refinance must go Standard Conforming and the rates are not as sexy as those bank numbers. A good loan officer can work around some of these issues with you.
Occupancy. Owner occupied - best terms. Second Home - still pretty good. Investment⌠ouch. If youâve got a national average 30 year fixed rate of 3.99% (Freddie Mac) itâs a pretty good bet you can improve on that average as noted above. When it comes to investment properties, add .75 or more to that average rate, even more with an ARM refinance product. Lenders arenât that enthusiastic about taking on rental property refinances so be ready for some pretty eye opening numbers when you call in.
Hope this helps. Questions? Ask away!
Thanks for reading
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If you have 2 properties in the same metro area which are not rented, is it possible to refinance as second home or primary home? Actually in this case, you can choose the subject property as your primary home.
How do lenders decide whether a property is primary home or secondary home? If the property is vacant, under renovation or right after renovation, can it qualify as primary home or second home refinance?
Now we have an authority to chime in and people can start to believe me 
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OK, I just got my credit report via the mortgage company. My scores were dinged because my HELOC line was close to maxed out. By definition a mortgage wonât have that issue. So HELOC is worse than cash-out refi if you intend to spend that money, not just as a standby reserve.
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Since you have made so much money in stocks, sell down margin.
HELOC is treated like a credit card for credit reports, of course it hurts your score when you max it out 
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Use a margin loan if you donât want it on your credit report.
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Misinformation. HELOC does not affect your credit score. Period.
Some people loves misinformation and disregards true information. What can I do when you choose bad from good?
Sometimes I am tired of being right but being the minority opinion. Should I choose to be correct silently and let misinformation spread like fire?
Is there any research showing that majority of the people prefer wrong information?
âYouâre right that a HELOC affects your credit just like any credit card account or other loan. Whatâs surprising is how it affects your FICO credit score. How much of the available credit you use on your HELOC is not considered by the FICO score, a stark difference from a credit card.â
Well it says so on my own credit report. I like to trust my own eyes more⌠
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