Updated over 4 years ago on . Most recent reply
Using equity to purchase 2nd property.
I currently own a property that has appreciated quite a bit and I would like to take advantage of the really low interest rates before they go up. I plan on buying something as soon as the beginning of 2022 or whenever I come across the type of property I am looking for that is at the right price. I do not have a ton of cash but I do have a lot of equity. I currently owe $380000 at a rate of 2.75% and I could easily get at least $750000 for the place. What is the best way to go about this, Refinance, home equity loan?
Should I refinance now with low rates and take out a large chunk of money to just hold and wait ($100000) so that I have enough money to put a down payment on a house even if it may not be for another 6 months or so which will then need a 2nd mortgage? Or should I Refinance and take as much as they will give me since the rates are low? Or should I take out the bare minimum I need once I actually find the next property? Or should I just consider a home equity loan?