Updated almost 2 years ago on . Most recent reply
Heloc or new mortgage
Hello all,
I have a paid off home in Colorado and am looking to purchase a new rental property that we will live in for 2-3 years in South Carolina. I am trying to understand if it makes more sense to take out a HELOC to buy the 2nd property in cash or just use that for the down payment and take out a traditional mortgage. Any wisdom would be appreciated.
Take care,
Tom
Most Popular Reply
I agree with the others that you should finance and only use the HELOC if needed for the down payment. There was a time when to be competitive in this market your best option would have been to pay cash, but with current market conditions I do not think that is necessary. Of course it all depends on the specifics, and I am happy to discuss that with you.