Updated over 5 years ago on . Most recent reply
Should I Refinance my primary residence into a higher rate or no?
I am considering doing a REFI on my primary residence to get access to a 100K HELOC. The problem is I have a VA loan on it and will have to REFI into a conventional loan to do so. My current APR is 3.25% and my new rate will be 4.125%. My Monthly payment will actually go down slightly, but is it worth the increased rate in order to get access to that 100K HELOC? I will be using the HELCO to do BRRRR deals.
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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- Boulder, CO
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Rental Property Investor
- Boulder, CO
@Logan Brokaw if all you are after is a HELOC, why go through refinancing? The HELOC is a second mortgage on your property. If you are going to pay the costs to refinance, then pull the money out and have it in hand.
If you are securing a HELOC, closing it will all depend on the value of your home and your creditworthiness. My suggestion is to work with a local bank quickly. I've heard grumblings that HELOCs are going to be few and far between for the next bit... nothing really to substantiate that other than other's opinions.
If you are going to refinance and cash out that $100K, my lenders are telling me to wait for a bit until the pipelines clears and rates come down a bit (and yes, they could go up as well... we just don't know). This is a more permanent debt solution where you are also inflating your expenses. So be sure you can withstand the extra expense. And have a plan :)