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Updated over 9 years ago on . Most recent reply

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30
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Joseph Quarto
  • Investor
  • Seattle, WA
2
Votes |
30
Posts

Better to do a Refi or a LOC?

Joseph Quarto
  • Investor
  • Seattle, WA
Posted

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

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1,843
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863
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Franklin Romine
  • Visalia-Fresno, CA
863
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1,843
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Franklin Romine
  • Visalia-Fresno, CA
Replied

@Joseph Quarto

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

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