HELOC - INTEREST ONLY
I'm trying to wrap my head around whether a HELOC is a good idea for an investment property. I applied for a HELOC and got a "counter offer" for a HELOC - Interest Only. Is this a good strategy to use for making down payments on rentals? I've only done cash out refis in the past, which are expensive upfront with closing costs, and I can't keep "refilling" the money available like a heloc, but seem much more straightforward.
Should I keep trying for a HELOC that is not Interest Only?
Here are the terms offered to me:
ELOC not to exceed $ 77,800 at 6% APR. This is a variable rate that will change quarterly based on prime plus 0.5%. The minimum monthly payment will be the finance charges due.
Interest only.
15 yr term, then Principal balloon payment of any balance, If you just pay minimum. Can refinance at that point.