HELOCs with Shawn Way
A home equity line of credit you draw on as you need it: fixed-rate up to $1 million, or interest-only on a variable rate up to $750,000.
Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated
What HELOC does Shawn Way offer?
Shawn Way offers two HELOCs: a fixed-rate line up to $1 million with principal-and-interest payments and terms from 5 to 30 years, and a variable-rate interest-only line up to $750,000. On your own home, you can be approved and sign the same day, and the line funds in as few as 5 days, after the 3-business-day right to cancel. On a non-owner-occupied investment property, a business-purpose line can sign today and fund tomorrow.
On this page
What Shawn's HELOCs offer
- Rate and payments: a fixed rate with principal and interest from the first month, or a variable rate with interest-only payments.
- Terms: 5 to 30 years.
- Line size: up to $1 million on a fixed rate, or up to $750,000 interest-only on a variable rate, depending on your equity, credit and income.
- Speed: approved and signed the same day, funded in as few as 5 days on your own home.
- Investment properties: business-purpose lines on non-owner-occupied property can sign today and fund tomorrow.
Shawn sends your numbers, usually the same business day. Checking won't affect your credit score.
Interest-only or principal and interest?
Interest-only keeps the payment as low as possible: you pay just the interest on what you've drawn, and you can pay principal down whenever you like. Shawn's interest-only line has a variable rate, so the payment moves with the prime rate, and goes up to $750,000. It suits short-term needs, like a renovation you'll repay from a bonus or a sale.
Principal and interest pays the balance down from the first payment, so there's no payment jump later and less interest over the life of the line. Shawn's fixed-rate line, up to $1 million, works this way. It suits a debt payoff or anything you'll repay over years. See how interest-only HELOC payments work.
Example payments on $100,000
At an example rate of 7.75% APR for both, to compare:
| Payment type | Monthly payment | Total interest |
|---|---|---|
| Interest-only, variable rate | $646 | No principal paid |
| Fixed rate, 10 years | $1,200 | $44,013 |
| Fixed rate, 20 years | $821 | $97,028 |
| Fixed rate, 30 years | $716 | $157,908 |
Your rate depends on your credit, line size and property. Try your own numbers in the HELOC payment calculator or see payments by amount.
How fast it funds
On the home you live in, a HELOC up to $1 million can fund in as few as 5 days. You can be approved and sign your loan documents the same day. Federal law then gives you 3 business days to cancel, and the line funds after that, as soon as the fifth day. It takes documents that are ready and a home that can be valued quickly. Many lenders take about two weeks or more; see how long a HELOC takes.
Investment properties: sign today, fund tomorrow
On a non-owner-occupied investment property, the line can sign today and fund tomorrow. Two conditions apply: you don't live in the property, and the money is for a business purpose, such as buying, fixing up or carrying rental property. Because the 3-day right to cancel covers only the home you live in, there's no waiting period after signing.
Expect investment-property terms to differ from a primary-home line. See HELOCs on investment property and using a HELOC to buy a rental.
Who it fits
- Homeowners who want to keep a low first-mortgage rate and borrow only what they need.
- Renovations paid in stages, where interest-only keeps payments low until the work is done.
- Paying off higher-rate debt on a fixed schedule with principal and interest.
- Investors who need to move fast on a purchase or repair.
- Larger needs, up to $1 million on a fixed rate.
Also asked
Can I get an interest-only HELOC?
Yes. Shawn offers interest-only HELOCs up to $750,000, so you pay only the interest on what you've drawn. Interest-only lines have a variable rate. You can also choose a fixed-rate line up to $1 million, with principal-and-interest payments that pay it down from the start.
How fast can a HELOC fund with Shawn Way?
A HELOC on your own home, up to $1 million, can fund in as few as 5 days: approval and signing the same day, then the 3-business-day right to cancel, then funding. Timing depends on your documents and the valuation.
What's the largest HELOC Shawn Way can do?
Shawn can arrange a fixed-rate HELOC up to $1 million, or a variable-rate interest-only HELOC up to $750,000. The line you qualify for depends on your home's value, what you owe on it, your credit and your income.
Can I get a HELOC on a rental property?
Yes, if it's a non-owner-occupied investment property and the line is for a business purpose. These lines can sign today and fund tomorrow, because the 3-day right to cancel applies only to the home you live in.
What does business purpose mean for an investment property HELOC?
Business purpose means the money is for the investment or a business, such as buying, fixing up or carrying rental property, not for personal or household spending. You confirm the purpose in writing at closing.
What terms can I choose on Shawn's HELOC?
Terms run from 5 to 30 years. A shorter term means higher payments and less total interest; a longer term keeps the payment low.
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Sources
Official sources behind this page.
- What you should know about home equity lines of credit (booklet, PDF) · Consumer Financial Protection Bureau
- Regulation Z §1026.15: Right of rescission · Consumer Financial Protection Bureau
- Regulation Z §1026.3: Exempt transactions, including business-purpose credit · Consumer Financial Protection Bureau
- Regulation Z §1026.40: Requirements for home equity plans · Consumer Financial Protection Bureau