Updated 3 months ago on . Most recent reply
cash out refi with a HELOC
Is it possible or even recommended to do a cashout refi on a home that already has a HELOC on it. Currently, I live in the home but am planning on either selling it or renting it out. It was bought for 900K and I still owe 650k. There is a 300k HELOC on it (bad decisions I know), putting the total owed at approximately 950k. Fair market value right now puts the house at 1.4mil. If I rent out the home, I could easily get 5000-5500 per month. I currently have a very low interest rate with a monthly mortgage of 3400/month.
Should I (or is it even possible) to get a cashout refi to payoff the HELOC and then collect rent, even though the new interest rate will most likely be much higher than the 2.7% I have right now.
Is this a smart plan or should I think of something else/