Heloc or Loan pro,s & con,s

2 Replies

Was looking at a single family REO property that's Is cash sale. After looking into home equity loan & Heloc was told processing time was the same 4-6 weeks. The property was through home path and there are only couple days left on First look status. So I think I am going to miss opportunity (property) as I do not have cash In account. I do not like adjustable interest rate on HELOC and would rather have fixed loan 15yr 150k. But If this deal does not work out will have to make monthly payments and Interest until another opportunity comes along (not good). So then I am thinking HELOC then turn Into fixed rate after purchase. Would be great to here someone's experience.

I'm assuming the loan would be on your primary residence and then you would use the cash to purchase the new property? If this is true, I would highly recommend the HELOC. Then you could use the HELOC to purchase properties and then refinance the new property into a traditional mortgage, pay off the HELOC, rinse and repeat. Great strategy for acquisition. Especially if you can force appreciation and get all or more of your cash back each time

sounds good Jordan and yes on primary property thanks

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