​HELOC Question please ..........

[Michael Dunn]

Good Morning,

How would my DTI be effected, assuming I take out a 10 year HELOC ( maybe I should opt for a 20 year ? )

If I take out a 10 Year HELOC , won't my " Minimum " monthly payment be JUST the Interest ( If that's all I want to pay ) for the First 5 years of the Loan ?
And if so , the Minimum Payment a Month would be about ....... $60 a month ?
Or will the Lender break up the 10 year HELOC's FULL 10 years worth of payments as an " Average " , and make this my ACTUAL monthly payment ( even though I have the ability to just pay Interest on the Loan , for X number of years ) ?

Assuming this is accurate ........ If I go to Purchase an Investment Property within say, 9 months from the day that I took out the 10 Year HELOC ........... How will a Lender look at this HELOC via my Monthly debts , when they use it in their analysis of running my DTI ?

I'm going to use this money to Rehab and Repair an Investment property, and Keep it as a Long Term Rental .

Or maybe I should Instead do a Cash-Out Refi. vs doing a HELOC , giving what my intentions for needing the $ are ( to Rehab/Repair an Investment Property I'm about to Buy ) ??

Thank you very much for the help and advice