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HELOC Troubles

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Greetings from NJ.

I am trying to get a HELOC from TD Bank. I filled out the forms online requesting 30K.

Got contacted on the phone by a "phone representative" who ran me thru my paces, basically asking all the questions that I had already answered, but OK, I went along. It was pretty lengthy.

What did raise an eyebrow was that he quoted me a much lower rate [3.5%] than I had seen on the initial online info.

So now he emails me and I am gathering copies of all the info requested [no surprises there] and do an authorization to further the process online. This send me to an online "file" where all my loan info is/will be.

Imagine my surprise when I see on this "loan file that the amount requested is 100,000.00 ! AND an ARM. [I guess that explains the low rate which is likely a teaser.]
I have emailed him back and am awaiting his explanation.

My question for you here, is: Is this a bait & switch? It sure looks and sounds like a duck.

Thanks for your replies.


FWIW: I applied about 10 days ago at another bank and have had almost the same experience. They advertised low loan amounts then tried to stick me with 92K with 6K worth of fees.


Senior Member
Yes, it's a form of bait and switch. Probably legal though.

Now that you know it's likely to happen, ask questions before you apply or go into your own bank and talk to a loan person.

HELOCs are lines of credit, usually minimal fees with slightly higher interest rates then refis, which is likely what you are being offered. More money for the lender.


Active Member
Just to clarify. The 100k or 92k is the credit limit similar to a credit card. You can borrow 30k on a 100k line and only pay interest on the 30k. You don’t have to take the full amount available.

In terms of adjustable rates given current economic climate rates are unlikely to climb any time soon (opinion). But if you want a fixed rate then look at a refinance.

Talk to your existing lender to see if they have low cost refinance or HELOC options. They may have lower fees because they already have a lien against your house so they don’t have to go through a full closing process.

I was just able to setup a HELOC through my bank who holds primary mortgage. No fees except I reimburse them $300 apppraisal if I close line within 2 years. I currently have no balance and only intend to use line for short term loans if needed.

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