Home Equity Loan- Is It Wise? (9% interest)

[Allen M Miller]

I am currently in the process of applying for a home equity loan. Ill be able to pull 33k out, BUT it's a 9% interest rate. Should I even consider doing it? I'd use it to put 20% down and renovate, myself. I would pay it down with the cashflow.

IS THERE A BETTER WAY TO GET STARTED?

Should i dip into savings and buy turnkey?

[Erik Estrada]

How much is your property worth? and how much do you owe? 9% seems very high for a HELOAN. 

[Henry Lazerow]

You could just use an 18 month 0 interest credit card and a few together should get you close to $30k. I wouldn't waste money on the close costs for such a tiny heloc and 9% is awful it should be prime +1 so 6.5% right now. 

[Nathan Gesner]

Pay 9% interest to purchase a property that makes 10% interest?

$33,000 isn't that much. If you're in a market that inexpensive, it would be wiser to hustle and save.

[Allen M Miller]

Its worth @ 215k and i owe 158

[Allen M Miller]

Quote from @Erik Estrada:

How much is your property worth? and how much do you owe? 9% seems very high for a HELOAN. 

Its worth @215k and i owe 158

[Tanner Johnson]

9% is bananas right now...

[Erik Estrada]

Quote from @Allen M Miller:

Quote from @Erik Estrada:

How much is your property worth? and how much do you owe? 9% seems very high for a HELOAN. 

Its worth @215k and i owe 158

My guess is that your lender sees that your LTV will be almost at 90% if you are trying to pull $33,000. Since that is risky, your lender is charging you a higher rate.