Should I use HELOC to refinance my income property?
Has anyone used a HELOC on their personal property to invest in an income property?
The fixed portion of the loan on my retail commerical property is coming to an end in May, then the loan converts to an ARM based on the WSJ Prime + 2.25%.
Would it be better/safer/more profitable to use my home's HELOC to refi the commercial property. The HELOC is based on the WSJ Prime which is at 3.25% currently.
Comments (1)
It has been a long used strategy to leverage your primary residence for investment because it is less expensive than investment property financing. Based on the numbers above it appears you save 2.25% by using your primary residence. Just two words of caution - it is reasonable to expect noticeably higher rates in the future due to our national debt load, and always be careful about over leveraging your primary residence.
Ted Akers, over 15 years ago