HELOC VS Refi
Just trying to get some feedback. Heloc is cheaper to obtain vs Refi. other than having to pay back the Heloc what are some negatives or plus. I'am trying to get cash to finance my next property. My objective is to buy and hold.
Seems that you answered your own question...
Since you'll be placing your primary residence at risk... just make certain that your acquisition makes sense.
Quote:
other than having to pay back the Heloc what are some negatives or plus
As opposed to some kind of loan you are aware of that you don't have to pay back
I like HELOC because of the low rates, and interest only payments. And of course even if I pay it down, it is still there to use again in the future. The only negative I can think of is the variable interest rate. If you are buying to hold perhaps look at how much you would pay on a HELOC against a fixed interest over the longer period.
Heloc is best bet.
Unless......you have a bad first
Can improve first.
First currently has a short term fixed rate.
Your heloc is prime plus too much.
can improve first and get it for www.cheap.combo
Washington Mutual has the best deal on heloc if you are 700 plus FICO
Prime plus nada, no app fee, drive by appraisal, stated. Are they for real? yep...I got one.
[addsig]
I personally like HELOC better. Particularly if my mortgage started many years ago or if the rate is already low. Plus no need to pay closing cost. I also like the flexibility of the account. Pay the interest only when you use it. However, I have 2 concerns: a) unknown future rate b) might impact my credit score b/c I open a new account.
-Depends on how long the HELOC will have a balance,
-What first mortgage rates are available
-Closing costs.
Cheapest wins.
So in a high rate first mortgage environment, a HELOC is the clear choice.
In a low rate first mortgage market, depending on costs, or higher rates wtih no costs, one would have to run the numbers.
Any one know how that www . cheap combo thing got on my post.....I just typed cheap.....came back today and some url was all over it. weird!
I've seen URLs like that a lot in peoples posts. things that don't make sense. I'm sure www.cheap.com has some good deals on crap you would never use though. BTW you can edit it out by clicking the edit/delete link right under the message.
I like HELOC. Why not use your helock to finance the property and then when you have it rented etc. refi or take a heloc on the rental to payback the original heloc. Sounds good no? I think you could get a bank to do a refi with really low costs if you smile big enough and maybe volunteer to clean their erasers. Worth a try. worst they can say is no.
Per your explination above, HELOC is the way. Two areas of concerns:
1) Don't get in over your head (It's your place of residence you are gambling with.
2) If the rates a good on the fixed rate, change it over. The tax deduction could more than cover the difference.
Some folks are talking about helocs on their primary residences...what about helocs on investment residences? Those make sense to me, if a sub2 has a high interest rate, or if closing costs on an investment property are prohibitively high...can anyone speak to these things:
Are NOO heloc rates much higher than owner occupied rates?
How long does it take to get one in place?
Is seasoning a problem?