Refinance and HELOC instead of cash out

[N'neka Scruggs]

Hi, 

I'm a newbie investor looking to for my 1st deal. I want to get a heloc on my primary home as a possible way to fund it. But I also have an adjustable arm with the interest rates slowly inching up so I need to re-finance. I know there are cash out re-fi's but is it possible to refinance and get a HELOC instead of cash out? Do you know of lenders that will do that?

[Carl Crump]

Originally posted by @N'neka Scruggs:

Hi, 

I'm a newbie investor looking to for my 1st deal. I want to get a heloc on my primary home as a possible way to fund it. But I also have an adjustable arm with the interest rates slowly inching up so I need to re-finance. I know there are cash out re-fi's but is it possible to refinance and get a HELOC instead of cash out? Do you know of lenders that will do that?

Hi @N'neka Scruggs Yes you can defitely get a HELOC and use it as cash out. What will happen is the current loan you have will be paid off and replaced by a new firs then there will be a HELOC that you can withdraw from for 10 years. So the current rate that is adjustable will become fixed with the HELOC as a second lien. Hope that makes sense. What area are you in?