Which Way to Utilize Home Equity

1 Reply

I bought a fixer upper almost a year ago and gained over $150,000 in equity. I'm going to refinance regardless to drop the PMI, but I was thinking I can also utilize the equity and keep around the same mortgage payment that I currently have after borrowing. (I'm comfortable with the current mortgage amount)

Anyways, there’s 3 options.

1. Refinance and keep a lower mortgage. 

2. Pull about $20,000 to fix up my home more. (Tear down a wall renovate the kitchen and bathroom) AND STILL HAVE A LOWER MORTGAGE

3. Take $30-$40,000 of equity and purchase another multi family. (Keep around the same mortgage that I currently have) 


it’s important to note that I’m a realtor and business has been very good. I can just take more time to save the money and pay for the additional doors, or home renovations without borrowing on my home. My real estate coach is advising to not use debt to buy more debt, but I know there are different views on that. I want to hear your thoughts. 

Hey @David Petikyan !  I am by no means an expert, but I would go with option #3.  With interest rates as low as they are, I don't think using leverage to buy a income producing asset is a bad idea at all.  Best of luck!