Obviously I need to actually talk to a lender about this but looking for general information on how this could/would work.
I have a 1st Mort on my PR, balance of about $97K, I also have a $50K Heloc with a Balance of $48K (served as a 2nd initially but has been used for a New Deck, Roof, Heat/Air Unit, etc over the years so I haven't hardly reduced the balance).
I'd need to get an appraisal to get accurate current value but last value for Tax assessment was $180K which I feel is likely low. I'd say $200 is safe.
If I were to Refi with the intention to get cash out to pay off the Heloc, and any more I could to get some cap to use towards an investment property, the likely max Refi will be 70% LTV correct? So only $140 which doesn't even pay off the Heloc.
If I were to attempt to do this would the lender (doing the Refi) likely want to pay the Heloc lender directly? Would the Heloc likely have to be closed or would I still have access to it?
Bottom line if I did a Refi that gave me just enough to cover the current 1st and the Heloc what are the chances I'd still have access to that Heloc to use for REI?
I know too many variables and I need to talk to a Lender, just wondering if I'm just basically living in a dream world that this would work out to my favor. Maybe a Home Equity Loan consolidates them and I get cash out? Again is it unlikely I'm able to keep the Heloc as well though?
Absolutely talk to a lender. As a primary, you should be able to get an 80% LTV. I'm sure their are products if you call around that will go higher to that. Your HELOC lender does have the option to close your HELOC when you pay them off, but from my experience, that usually doesn't happen unless there is some type of financial crisis.
thanks @Frankie Woods all great points. 80% does at least make me feel like I’ve got some room to work. And if I’m lucky enough to keep the Heloc then it gives me some other options to help me pick up another property or 2.
No problem! US Bank offered me 90% :). No points or fees.