OfflineYou have 40k tied up in a property with about 80k in equity. Do you refi for more and pull out your 40k, or keep your current mortgage and do an HELOC for 40k?
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Don't Wish the Past, Create the Future! - DH
You have 40k tied up in a property with about 80k in equity. Do you refi for more and pull out your 40k, or keep your current mortgage and do an HELOC for 40k?
Don't Wish the Past, Create the Future! - DH
Personally, i would refinance 80 or 90% and use that $$ to purchase another property. You don't want to pull out all the equity on the property, but that's just me. It depends on what you want to do with the property and the $$. Good luck!
Lloyd
Good question. It will be interesting to see how everyone replies. I can see pros and cons with each of them.
nsherrick
Thats some great leverage money. More property
D, what are the terms of the current loan? If it's possible to get better terms I would refinance to keep it at just one mortgage (considering the limit on mortgages). Otherwise, go with the HELOC. That's as good as having the cash at your fingertips for future purchases. Actually better, because you're not paying interest on it in the meantime. Just my first thoughts.
Rina
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I am assuming you have a renter in place. Will the refi kick up your monthly breakeven so there is no positive cash monthly. I see the $$$ in your eyes, but will the prop support a higher breakeven. This thread should be a good one...Jan
for the replies thus far.
Lloyd either way the equity in the house will be less no matter which way you go.
Rina, the rates now are not much better than what I already have.
Jan, yes it is rented and either way it will lessen my cash flow.
My thoughts are to go with the HELOC, little to no closing costs.
I would like to hear all the pros and cons from all you seasoned pros out there...
Don't Wish the Past, Create the Future! - DH
I perfer the HELOC because you can pull money out pay it off and still be able to pull money out again. Get a draw priod as long as possible and that is money at your fingure tips anytime you need it.
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I was thinking the HELOC too, but then I got to thinking, with a HELOC the terms are usually 10-15 years and that will make my payment too high. When added to my current mortgage payments it will make for a negative cash flow.
So I am going to look into refi'ing.
Don't Wish the Past, Create the Future! - DH