Updated about 10 years ago on . Most recent reply
2 days to back out of a HELOC. Found something unusual. What2do?
So I just closed on my HELOC thinking I got a greet deal. ARM, margin Prime -.5 throughout the entire 10 year draw,. But,
The way you pay is different, for every $1,000 drawn the payment would be $14.00. So if I maxed out the 50k my payments would be I think $700/mo. Their Cap APR is 15%, they go by that with the rest going to the principal, also if I did max out and got that 700+ bill every month it would not change until I finished paying it back to $0.!
I want to rent out my house ($1270-1475). Use the HELOC to purchase a multifamily property, owner "house hack" renting the 2nd unt with intentions on cash flow. Pay the HELOC with income from this house, and have my next duplex+ cover its expences+
Is this normal for HELOC's? It was my understanding it was usually Prime +1, and go off a margin a couple points depending, but I thought they were intrest only payments? I'm a Newbie if you can't already tell by now.
2 days left on my chance to back out "grace period". Any advice would be wonderful! Thank you BP members!