Refinance: Simultaneous conventional and HELOC??

[Symone Gordon]

Hi Everyone! I'm looking to refinance my duplex. I've got to get this monthlY payment down to create more cash flow - I like the idea of a HELOC - My broker is suggesting I refinance to conventional and take out a HELOC Simultaneously -

My goal is to decrease the original mortgage payment and use some of the equity to purchase another home.

Any words of wisdom and experience are appreciated :)

[Matt Devincenzo]

Is this OO and you're staying an additional year for your new occupancy provision, or NOO and you're getting investor rates/terms?

Overall I think you're probably right at that refi point with minimal if any HELOC/Cash-out. MFR rate and term refi LTV is 75% which on your 305K value is a new loan of only 229K +/-, which means you are coming to closing with 13K to reduce the loan balance. Unless your broker is saying by doing the simultaneous HELOC he would be trying to get an 80% LTV for an OO duplex. Your new 1st position mortgage would be at say 70% LTV (213K +/-) and then the 2nd would be for an additional 10% (30K +/-), which allows you to eliminate the MIP etc.