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Updated over 9 years ago on . Most recent reply

Better to do a Refi or a LOC?
Hi,
This question just came up. On a building we have with lots of Equity (balance mortgage is $56k)
I am looking to free up some cash ($250-300k) for a future 2016 purchase, but wanting to get all approved now. Should I follow thru with the bank Refi & just "bank" the $ until next year OR get a LOC for about the same amount and avoid some closing costs & carrying charges until I make the purchase? This way the existing mortgage will continue to go down.
Pros/Cons, other than the obvious Rates may continue rising. Is LOC interest rates deductible?
Thanks,
Joseph Q
Most Popular Reply

If you going to use the capital for a purchase I would go the refi route. Lock up the loan in good terms.
Debt is a narcotic. Accumulate lots of good debt secured by income producing assets and we have a very nice problem if managed properly.
Frank