Refinance out of a HELOC with a new HELOC?

2 Replies

Hello all,

I realize I can just call my local banks and even my current bank, but they’re not open at this hour..so...I inquire of the wonderful BP minds:

Can you refinance out of your current HELOC into a new HELOC...with a different bank? The situation is simple: I got a HELOC with one of my local banks at 85% LTV a few months back. Well, it's about to be maxed out here pretty soon with my current flip projects (don't worry I have reserves!), and it sure would've been nice to have access to a bit more. Enter: other local banks that offer 90% and even 100% (at a couple point higher rate of course) LTV - possibilities would open up considerably, significant difference in available funding.

So my questions stands - could another bank refi me out of my current HELOC, take on the current balance of it into my new, higher limit? Or do I just need to finish these flips, pay off my current HELOC balance, then just cancel and apply for the new one? Part of this is also seeing plenty of data in sold comps since I opened this HELOC verifying that the actual value of my house has gone up a solid amount as well, so hence the extra motivation. Hope this makes sense, thank you!

I don't see why you wouldn't be able to refi into a new HELOC, granted you have enough equity to get a new loan to absorb the old one and still give you some breathing room.

@Bob Okenwa

Thanks for your input Bob, I’m hoping this is the case as it would definitely be nice to have access to more cash. 

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