HELOC Interest Payments

2 Replies

Hello,

I plan to use a HELOC to buy an investment property in the next 2-6 months. PenFed bank has offered a 12-month 3.24% interest rate on funds that I draw at the closing table. I don't want to pay interest on the funds while I look for deals. Additionally, I don't want to miss out on such a low rate. What are some high-yield financial vehicles I can place the money in so I'm not losing on interest payments until I find my deal?

@Tanesha 

I'm in the same boat, using HELOC.

I found a good deal from Bank of the West.

They drop a whole% if I draw a 100k. However, the broker says, that I can move the funds back on the next day but the discount will stand for the whole term.

Ask them, if there is a limit on how quick you can pay that money back.

Good luck