How To Find The Right HELOC in Minnesota

Welcome, class. Today we're going to be looking at the state of Minnesota, how to find the right home equity line of credit in the second position in the state of Minnesota. So with that being said, let's take a look at the whiteboard. I got it all prepped out for you on the left hand side of the board, as you can see, has not changed. The only thing that will shift on the left hand side of the board in terms of my framework to help you find the right home equity line of credit, it's just understanding the prime interest rate environment that we're in. So at the recording of this video In November of 2025, the current prime interest rate is 7%. It just got reduced by a quarter point recently. So if a, if there's a rate cut in a specific month, usually the following month, if you already have a home equity line of credit and it's a variable rate, then you'll see that change usually take place the following month. Unless you're on a intro rate period with your HELOC, or you have a fixed rate home equity line of credit for a longer period of time, anywhere from three to five years typically is what you'll see. You won't be impacted. And for those of you that are on a quarterly cycle, so your rate only changes every three months, or I have a home equity line of credit where my HELOC only changes every six months. So it just depends, right? No, HELOCs are created equal. They're all very different. A lot of nuance, a lot of details. But this framework right here, if you guys would just follow it, I promise you, you cannot go wrong when you eventually obtain your home equity line of credit. I work with so many people who are doing it wrong and you're out there just watching two videos, you get excited, you apply, and you know, you shoot yourself in the foot. It's unfortunate for those of you that for the few and increasing folks that are watching this series, that have watched my other videos in the past over the last seven years, and other content creators that are trying to provide this education, you're doing the right steps. Congratulations. You are the folks that know how to borrow. You've mastered borrowing in this particular area of your personal finances when it comes to leverage. And you're getting the best deals, you're getting the best rates, you're getting the best offers. I want to see more people get that because these banks are competing for your business. But if you keep doing business with the bigger banks, you're never going to see all this opportunity right in front of you. For those who are in the state of Minnesota, please pay attention. If you're a resident of Minnesota, this state has come to play. There are quite a few banks couldn't even fit everything on the board in terms of what's being offered right now. Different banks that are competing for your business. So like I said, left hand side of the board. This is your framework. This is what I use when I'm doing my research to find home equity lines of credits in the second position specifically, this framework is for second lien helocs specifically. Now this will overlap for a first lien heloc, but there will be some differences. I found you 1, 2, 3, 4, 5, 6 banks that made it to the board, but there are going to be some honorable mentions. All right, so I'm going to share my screen, walk you through my research and help you make a decision from there. All right, so typically when I am looking for a home equity line of credit for my clients, I will simply type in credit unions in the state that I'm looking at that offer a home equity line of credit. I will scroll through the whole first page of Google. Now as you can see, I'm on page two so I will typically go through page one of Google. I skip past the sponsors. Those typically are not going to be the most attractive. I come right over here. AI usually gives me a list of banks to work with, sometimes with the links attached and I'll keep scrolling, click on all of them and then I even will go to page two again skipping the sponsors. Those are typically bigger banks that are not going to have as competitive products as some of these smaller banks that don't put a whole lot of money in marketing. And that's when I'll pretty much finish my research. Now, state of Minnesota, all these tabs here are banks that I found. Alright, so very, very competitive from what I've seen so far. We got Blaze Credit Union. This did make it to the whiteboard. Some key details, They've got a 3.99% intro offer for a year which is pretty attractive and then the rate goes to prime afterwards, as low as 7.25% most likely. This has not been updated just yet. If so, either it is 7.25% so that would make it prime plus 0.25% or it just hasn't been updated yet. Come December is when we should probably see that that update and then it'll say rates as low as 7%. All right, so that's just at the time of recording this video pay no more than $750 in closing costs. I typically like to get HELOCs that are zero closing costs or somewhere around 500 bucks or less. So 750 is not too far off from that. Got a 10 year draw period. No annual fee. Pretty attractive. Not going to lie. Made it to the whiteboard. We got Affinity Plus. Made it to the whiteboard. 90% LTV. So it has to be less than 90% LTV. And the rate can be as low as 6.25%. I don't know if that's an intro rate because then it says APR as low as 6.49. So 6.25 might be some sort of intro rate. Then it goes to as low as 6.49. That's basically prime minus 0.5%. So that's pretty attractive. I threw that on the whiteboard. Then we got Royal Credit union doing a 4.99 for the first six months, then 6.25% afterwards. That's prime minus 0.75%. Extremely attractive. Some of the drawbacks does have a five year draw period. Don't exactly love that. And you have two options. They have a three month quarterly adjustable rate. So the rate only shifts every three months. Closing costs even cheaper. 250. Need that 700 credit score. 70% LTV. And where did I see the draw period? Somewhere in here I saw the draw period. I'm missing it. But you can trust and verify. I know I saw it somewhere. I'm just not seeing it at the moment. Coming over to the next bank. Here's just an honorable mention. Hometown Credit Union. No or low closing costs. We like that. 90% LTV. I'm guessing a 10 year draw on this. We check HELOC rates. We have prime. So not bad, right? Just another honorable mention. Minnesota is coming to compete. We like that. Here we have another bank. This also made it to the board. Minnesota Valley Federal Credit Union. If you do 70% LTV prime minus 0.5% with a one year intro of 4.99. That's really attractive. And there's no closing costs. So we come. Yeah. So how much are closing costs? Offers a no closing cost option for members who borrow 10,000 or more. So that shouldn't be difficult. And have the loan open for at least three years. Shouldn't be difficult for us to do that. So that is really attractive. This was another bank I found called Members Cooperative Credit Union. Although one of the reasons why I didn't make it to the Board was. I just didn't have enough information. So it's part of my research. I just wasn't able to find. They were not revealing important details for me to go off of for me to put it on the board. So if you wanted to dig deeper, you live in the state of Minnesota. Call them directly and try to get more facts about their HELOC product. Here's another bank I found, Novation. They offer a home equity line of credit. 7% right at prime 7 year draw. But that was it. I didn't get any other details on their site. Honorable mention, Top Line Financial Credit Union made it to the board. They're also doing a 4.99 intro rate. 10 year draw. We like that. Then the rate goes to prime afterwards. So 70% LTV somewhere in here breaks down the the rate. So we like that. Very similar like, like you're seeing a lot of 4.99. 4.99. So very very similar competition going on with credit unions and federal credit unions in Minnesota. Credit Union one didn't make it to the board but as part of my research they have a 2.99 so they have the lowest intra rate offer but it's only for three months. Then it goes to prime plus 0.5%. So I've already found you a bunch of prime minus banks. So I would say no even though they have no annual fee. Probably don't have a whole lot in closing costs but I can find you better. Another honorable mention, Mid Minnesota Federal Credit Union. 7.25 so that's prime minus. It's either prime or prime plus 0.25. Again we're. I'm in the month of November as I'm recording and rates just decreased not too long ago. So that may need to get updated. We have SMW Financial Credit Union also made it to the board. 4.99 intro rate. I just don't know for how long. Wasn't able to see that. What I did like is there is a 15 year draw period that's pretty attractive. There is an annual fee. Where did I see that? Right here. So you have an annual fee of 50 bucks. Closing costs the most that I've seen. It could be as low as 200 bucks which is the lowest. But it could also be as high as 2000. So that's a little bit tricky. Then something very interesting here. Rate can either be a plus or minus 2%. So if you've got great credit this might be a bank I would look at. So it did make it to the Whiteboard. Then we have Northstar Credit Union. They do offer a home equity line of credit. They just not, they just didn't share any details. So it didn't make it to the board. Then we got Superior Choice Credit Union gave a few details, not enough for it to make it to the board. Okay. So that would require a phone call and with that leads us to our top picks. So if I was living in the state of Minnesota, my top two banks, based on what's on the board here, I'm really attracted to Minnesota and Royal because they have the highest prime minus rate as well as they've got pretty attractive intro rates. 4.99 for six months. You have 4.99 for one year. 70% LTV, no closing costs, mobile banking friendly. So I put Minnesota first on my list. Although I'm not opposed to Blaze Credit Union as well. Okay. 10 year draw, some closing costs, 80% LTV so I can get more if I wanted. This is where there's the, the nuance where if I'm looking at per case if someone's trying to get more equity, they might lean more towards Blaze if they want a longer draw period. Your, you know, Royal Credit Union is probably going to be off the board. But what did Royal bring to the table? The highest prime minus rate, that's 6.25. That's extremely attractive. But you do lose out on the 4.99, it's cut by six months and it's only a five year draw period. So if I'm not going to be in debt that long, let's say your focus is eliminating debt and we run the numbers and we estimate without velocity that we would be able to pay off your debt in under five years just making extra payments. Maybe you might lean toward Royal Credit Union to get that lowest variable rate option. Or if it's going to be a little bit longer, again you might be attracted to Minnesota Blaze top line like these ones are offering the the highest intro rate period. So honestly in the state of Minnesota, hard to go wrong here. They're all pretty attractive banks. What's going to help you make the best decision is additional coaching. Have a professional take a look at your overall finances. What are we trying to achieve? What are we trying to cover? I'm someone that can serve you in these initial pregame work steps. That's why I put these kinds of videos out. That's why I'm putting this series together where I'm literally covering every single state in America to help folks find the right home equity lines of credits in the second position. We are currently in a declining interest rate environment, so we're just going to see more and more competition with HELOCs. Certain states, as you will see in this series, are really competitive. Like Minnesota and other states are just not really offering much. That's where you can then look at federal credit unions that cover multiple states. So if, let's say you're in a state near Minnesota and your state is not competitive with HELOCs in that are specific to your state, maybe look at some banks that may be based in Minnesota but cover three, four neighboring states. So that's how you can do your research. So again, even though in this series you might be looking for your specific state, don't overlook the other videos. Pay attention. I'm giving gems and really good insight in every single video that's going to help you really just master your personal finances around borrowing. Specifically how to borrow, how to be a better borrower because the less interest you pay over your lifetime, guess what? That's more money you can save, invest, give tithe, etc. That you get to control more of your dollars. So just by being an effective borrower because it's not just all about getting out of debt, but it's like, okay, how do we avoid unnecessary debt positions in the future? What if you do have to borrow again and you had the tools on how to borrow at the cheapest cost, at the right time, right environment, with the right tool, you're gonna put yourself in a better position. Okay, so with that, keep with this series. If you haven't seen your state yet, be patient. I'm going one by one. Sometimes I go live and sometimes I do pre recorded videos just like this. I've got a whole entire playlist where you can look for your state. All of them will be put in that playlist. How to find the the right home equity line of credit in the second position. Have a wonderful day, God bless and we'll be talking soon.