Please help to figure out

3 Replies

Hey guys, I feel like I start to freak out and when I freak out I can’t think strait, so can u help me please to put this all in place? I am buying a fourplex for 250k and I need at least 25% down , which is what, about 50-60k?

I have a rental that is almost paid off so I can refinance it or take a Heloc , whichever is quicker or better ... I owe on it 6 k and Zillow appraised it at 83k.. I’ve never taken Heloc so how does it work? 

 Do they give me the money right away and if I am not ending up buying the fourplex then Since I took a heloc it is considered that I took a loan  and still have to pay interest on that heloc ? 

Or does heloc work like some sort of credit card and it doesn’t charge interest until you start buying something ( a house in my case)  ,  so if I end up not buying the fourplex then I don’t have to pay interest on heloc?  

It's a line of credit, as the name implies. So if you don't purchase anything with it, there's nothing to charge interest on. 

Originally posted by @Nicole Heasley :

It's a line of credit, as the name implies. So if you don't purchase anything with it, there's nothing to charge interest on. 

Thank u! But somehow it shows up on your credit report as if u did take the loan out? 

It's a line of credit so yes, it's going to show up on your credit report just like any other line of credit would. Also like a credit card, if it has no balance, it's going to show up with no balance.