- Rental Property Investor
- Port St Lucie, FL
- Votes |
HELOC or Refi for down payment on next BRRR
Was going to do a HELOC on my primary for a down payment on my next BRRRR, then pay it back after I refi. I will use PML for 80% of purchase price and 100% of rehab
Discussing with lender on my primary who suggested a refi instead of HELOC because I have an FHA and paying $216 a month PMI, his thoughts refi to get rid on PMI, it would be a higher interest rate which would give me more of a deduction as I'll be paying more interest but he also suggested pulling out some of the equity to use for the rehab. Sounded good at first but after giving it some thought don't want to be paying the interest on money for the rehab for the next 30 years. Found a local credit union that offers 3.99% interest on HELOC for first 6 months and no closing fees if I keep a balance for 36 months. Will probably pay off the HELOC within a year pay the closing costs as they are about $1500.
Thoughts, suggestions? TIA