HELOC and its effect on new mortgage rate & LTV

[Manohar Reddy Paduri]

I want to take HELOC 40K line on current primary home with Market value of 620k and equity of 180k.

I also want to move out in 3 months after purchasing new property as primary and making current one as rental.

so what will be the effect of New HELOC of 40K line but with out withdrawing funds on new mortgage i will be taking in 3 months for new property .. how will it change rate & LTV?

Is it advised to take HELOC or not [with current situation i am in]?

Opinion and inputs form Underwriters in here is very much appreciated.

[Dan Schwartz]

@Manohar Reddy Paduri In my experience, there are lenders that treat the unused LOC like an unused credit card, and there are others who need to qualify you based on the monthly payment of the full line were drawn. You'll need to talk to a lender and find out how they look at it.