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?
You should check the fine print. Some HELOC instruments cannot be used to make certain investments into stock for example.
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.