PLOC- Fixed or Adustable Rates?

1 Reply

I am shopping for Personal Lines of Credit. I will be using my PLOC to fund my deals. I will be using the funds in its entirety and paycheck park to bring them back down then repeat.

I went shopping for PLOC rates and narrowed it down to 2 local credit unions.

One offers an adjustable rate starting at 9% and maxes out at 18%. My credit score allows me to get 9-10%. (Currently have a checking account.)

The other offers a fixed rate starting at 12%. The criteria for getting 12% is a bit higher than my credit score. (Requires opening checking)

Both credit lines never expire, no annual fees, no prepayment penalties, no limit on draws.

Which is the better option? Will it really matter if I’m using the paycheck park method to pay back?

Thanks in advance!

@Richard Xiong - With the two lines of credit I have, they are adjustable. I am not worried about the rates changing as I only tap them for short term funding. I think the longest I have used a line was 6 months, and most of the time it is 30-90 days. 

Now with financing for property, I have been pushing hard to get 30 year fixed rates on anything I do under 4 units as it will be long term debt and I don't want to worry about rising rates. Then even on larger stuff 5+ units, I try to get the longest fixed term I can.

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