Velocity Banking HELOC 1st Postion Loan
Extra Ordinary Payments
| Date (MM-DD-YY) | Amount |
|---|---|
- Current Other Loans
- Current Home Loan
- Velocity Banking Loans
- Pre Screen Life Insurance
- HELOC Loans Info
- HELOC Presentation
- HELOC FAQ
- HELOC Outline
- Set Appointment with Loan Officer
- 6 Month T-Bill Ticker
- Video
- HELOC Step by Step
- PNC Heloc
| Start Date of Loan | Type of Loans | Amount | Interest Rate | Number of Years | Payments per Year | Number of Payments | Payment Amount | Principle | Interest |
|---|---|---|---|---|---|---|---|---|---|
Home Loan Amortization Schedule
Extra Ordinary Random Payments
| Date (MM-DD-YY) | Amount |
|---|---|
Enter Values
| Original Loan Amount ($) | |
| Current Annual Interest Rate (%) | |
| Loan Period (Number of Years) & Type of Loan | |
| Number of Payments per Year | |
| Start Date of Current Loan | |
| Optional Extra Monthly Payments ($) |
Loan Summary
| Scheduled monthly payment ($)(Taxes & Ins. not included) | 2,211.62 |
| Scheduled number of payments | 180 |
| Actual number of payments | 180 |
| Total early payments ($) | |
| Total interest ($) | 138.092.49 |
| Lender Name |
Pay Checks Per Year (use monthly numbers)
| HELOC Loan 1st Postion Loan Amount ($) | |
| HELOC Annual Interest rate (%) (6 month T-Bill + points) | |
| Start date of HELOC Loan | |
| Closing Costs for Heloc Loan (No Extra Charges) | |
| (Note: Interest on the Loan is Figured on a Average Daily Balance) | |
| Pay Checks Per Year (use monthly numbers) | |
| Total Income Net Deposits Per Month ($) | |
| (Note: T-Bill Adjusts Each Month) | |
| Life Ins. Policy Loan Deposit (Home Loan payment) ($) | |
| Starting Month for Life Insurance payments | |
| Credit Card Cash Back (%) | |
| Before | After | |
|---|---|---|
| Total expenses that includes Home Loan per month ($) | ||
| Current Home Loan payment (Principal & Interest) ($) | 0.00 | |
| Life Ins. Premium Payment (Home Loan Payment) ($) | 0.00 | |
| All Expenses (Including Property tax & Ins.) ($) |
| Before | After | |
|---|---|---|
| Total Number of House Payments | ||
| Total Interest Paid ($) | ||
| Annual Income Inflation Rate (%) | ||
| Annual Expense Inflation Rate (%) |
| Life Insurance Face Amount | |
| Life Insurance Cash Value | |
| Life Insurance Cash Value | |
| Life Insurance Cash Value | |
| Life Insurance Cash Value | |
| Life Insurance Cash Value |
| Interest Saved by HELOC | Interest Saved on other loans | Total Interest Saved |
First Lien HELOC FAQs
1. Do you work with banks that also offer a 2nd Lien HELOC?
Currently the banks we work with only offer First Lien HELOCs, they do not have 2nd Lien HELOCs.
2. What are the Maximum loan-to-value limits?
The max LTV currently is 89.9% for primary residences.
3. How do you determine value? AVM (Automated Valuation Model) or full appraisal?
Full appraisal to determine the value.
4. Can you purchase a home with a First Lien HELOC? If you recently purchased a home, how long do you have to wait before getting a First Lien HELOC?
You can use a First Lien HELOC for a purchase. You can refinance into a First Lien HELOC right after purchasing a home as well, however, to take advantage of a higher valuation as compared to the purchase price there is a 6-month seasoning period.
5. What is the maximum loan amount on a 1st lien HELOC?
The maximum loan amount for a 1st Lien HELOC with our bank relationships is $1,500,000.
6.What is the minimum credit score requirements?
660 minimum FICO Credit score, however borrowers will need a 700 or above for the best terms.
7.What is the timeline after a derogatory event for Bankruptcies (Chapter 7 and 13), Foreclosures, and Short Sales?
Our banks require a 4-year waiting period after discharge/dismissal for bankruptcies, (7 & 13) foreclosures, and short-sales.
8.How does the HELOC calculate the interest rate?
The interest is calculated based on the average daily principal balance.
9.What is the minimum payment required? Interest only option? P+I? Percent of balance?
Yes, there are. This transaction is a full refinance transaction (as compared to a second lien HELOC transaction which extends a line of credit on top of your existing mortgage.) The fees generally include: (a) Bank Fees, (b) appraisal fee, (c) Title fees, and (d) State Fees.
11.What is your draw period? (How many years is the HELOC open-ended, and you can make withdrawals)
Our banks have a 10-year draw period.
12.What happens after the draw period expires?
After the draw period, the remaining balance converts to a 20-year amortized loan.
13.Are there renewals if there is a balance at the end of the draw period?
Customers may refinance at the end of the draw period.
14a.Is there a checking account?
We work with banks that offer First Lien HELOCs that come with an Integrated Checking account with a bi-directional sweep. This checking account is the same full-featured checking account that you’d receive as a retail customer with the bank; however, it is fully connected with your HELOC and sweeps money to and from your HELOC and Checking account, so you never have to.
14b.Can I deposit income directly into my HELOC?
With this structure, you simply deposit your income into your Integrated Checking account, (in the same way you do with your current checking account,) and the forward sweep function automatically pushes (sweeps) the money into your HELOC account every single night.
15.Can I use my HELOC as overdraft protection on my checking? Is it free?
This function comes automatically with the First Lien HELOC we choose to work with. Yes, it is free with them. There is no overdraft protection fee, no transaction fee, and no annual fee with this product.
16.Can I set up online bill pay linked to my HELOC?
Yes, remember the Integrated Checking account is the same full-featured checking account you’d receive as a regular retail customer, so it has all the features you’d expect with any new checking account.
17.What states do you lend in?
Our banks can lend in all states except Alaska, Hawaii, and Texas.
18.Do you have a prepayment penalty associated with your HELOC?
No, there is not prepayment penalty associated with our banks’ HELOCs.
19.Are there annual fees with this HELOC?
No.
20.Are there any transaction fees associated with the HELOC?
No.
21.Do you have cash reserve requirements to qualify?
Not if the borrower has above a 700-credit score and a loan amount of $500,000 or less. Otherwise, it is either a 3-mo reserve, or a 6-mo reserve limit based on credit score and loan amount.
22.What is the turnaround time for completing a HELOC?
The turnaround time can vary between banks, however we usually advise to anticipate around 45 days.
23.Can I close remotely?
Yes, you can close at a title company that is close to where you live, or a mobile notary can come to you with docs to sign.
24.Can I get a HELOC for investment properties (rentals) or second homes (vacation properties)?
No, currently our banks only offer HELOCs for primary residence loans.
25.What documentation is required? (For best results, get a comprehensive checklist and get the ENTIRE package to the Bank ASAP.)
For best results, get a comprehensive checklist from the bank.
We advise collecting identification docs, income documentation, tax documentation, asset documentation, as well as documentation on real estate owned.
Credit Card
Pays All bills with Credit Card
Heloc Loan 1st Position
Your Bank Account:
- a. All Income Deposited Here
- b. Pays Down Your Line of Credit
Line of Credit:
- a. Finance Your Home Loan
- b. Pays off Your Monthly CC Balance
Index Life
Life Insurance Pays Your Home Loan
Build a Tax Free Retirement
&
Pay Off your Current Home Loan as quick as 3 to 8 years (15/30 year notes)
HELOC Step by Step
-
Run a Quote on the Velocity Banking Calculator to See How Much Money You Can Save the Client.
- If the Client Likes What They See, Move Forward to Pre-Qualifying Them.
-
Qualify Your Client:
- Heloc Pre-Screen Form (No Credit Score Hit) → Submit Pre-Screen Information to the Banks
- Life Insurance Pre-Screen Form → Submit Pre-Screen Information to the Life Insurance Companies
- Qualifying the Client is the Most Important, So We do Not Waste the Clients Time. This Prevents the Client From Having to go Through Application Process, if They Are Not Approved.
-
Find Out What the Clients Goals Are:
- Payoff Home Mortgage Faster and Build a Tax Free Retirement
- Secure a Line of Credit for Investing Purposes
- Cash Value Goals for Retirement
- Once the Client has a Pre-Approval From the Pre-Screening Process on the Heloc Loan and Index Life Insurance, We Will Proceed to Designing a Tailored Plan According to the Clients Goals.
- Submit Full Application to Bank and Life Insurance Company That Best Fits Their Needs.
-
Questions?
- Email: velocitybankingbyroncomer@gmail.com
- Cell: (573)797-1000
- Office: 1(800)690-6252
Thank you,
Agent Ron Comer
PNC Fraud #(800) 762-2035
Note: This is not a normal HELOC Loan, most loan officers have no clue how this HELOC works. PNC Bank has a $50.00 annual Policy Fee for the HELOC.
PNC Bank can do this type of loan in every state except: (AK.,NV.,MS.,HI.,SD.,LA.)
Note: Texas has a whole set of different rules.
Loan Origination Fee for all other states:
(Up to $149,999 -----> $199) ($150,000 to $499,999 -----> $299)
($500,000 - $749,999 -----> $399) ($750,000 or greater -----> $499)
Note: Origination Fee will be added to first HELOC Payment.
Note: Keep checking acct at zero balance
PNC BANK ACCOUNT
Deposit all income here
- Transfer All income same day to Line of Credit
- Line of credit auto-advances to checking Account Automatically
- Checking account has overdraft protection
- Link external accounts (delays money which costs you money)
Note: Interest figure on average Daily balance
PNC LINE OF CREDIT
Keep all money on the line of credit
Deposit Options
- Hard cash (next day) – Done at a physical branch
- Cashier’s check (next day) – Done at a physical branch
- Personal check (5–7 days) – Done at a physical branch
- All deposits credit back to the deposit date
(Keeps average daily balance reduced) - All these transactions need to be done at the bank
- Do not use Debit Card tied to the Line of Credit
- Under $50,000 – Next day credited
- Over $50,000 - takes two days to credited
Note: Only pay the statement balance
CREDIT CARD
Pay all bills here
(Except Bills that Can Be paid with Credit CARD)
Credit Card Payments
- Life Insurance Payment: (PNC checking account-auto draft)
- Car Payment: (PNC checking account-auto draft)
- Statement due date: (one day before due date)
- Typically credit card statement: (Cut off time is 8:00 PM Eastern)
- Credit card payment: (Paid by PNC checking account)
(Policy Loan Starts Year 2)
Index Life Policy
(Policy loan sent to PNC checking account each month.)
Policy Loan Setup
1) PNC Bank Account (Auto Draft)
2) Policy Loans are Flexible
3) Steps to set up policy loans
(Example: North American Life)
a) Request for recurring loans each month: Form 02446 Requires wet signature
b) You can use the following options:
- Checking account – Void check required
-
Savings account – Bank letterhead required
- Must include routing number and account number
- Use existing bank account: The current account the life insurance company is already drafting for the monthly premium
c) Paper check every month