Pay off existing HELOC with a new HELOC?
Hey BP-
I recently funded part of a down payment on a new property using a HELOC (on my primary residence). I used Figure Lending (online bank) because of the fast application and closing process, which I needed to complete in time to close on the deal. Unfortunately the rate is high (7%) vs. competing HELOC rates I've seen in my area (Bergen County, NJ) that are as low as 2.5%.
I'm wondering if I could take out a new HELOC to use to pay down the entire balance of the original HELOC. Although I also have the option to pay down the original HELOC with cash over time, I would prefer to not have that much cash "in" the property and instead reinvest my cash into my next property purchase. At the end of the day, I also want to have an open HELOC (at the lower rates) to use for future investments.
I talked to one local bank who said I could not take out a second HELOC on the same residence, but I've found that the feedback from banks is often very different.
Appreciate any insights, especially for those in the North Jersey area. Thank you!