Cash out refi on top of Heloc
Hey Everyone,
I got a heloc on my previous home to fund the purchase of an investment property. I’ve since moved to a different property and a few years have gone by. The property now has more equity than when I first got the heloc. My question is, if I pay off the existing balance on my heloc, could I a) close out the line of credit, and/or b) get a cash out refi on the new equity amount? I would use the cash to buy more properties of course. What would be the smartest move? Or is there perhaps another strategy I could use here? I’d like not to dip back into the heloc because it has an adjustable rate which is high right now, and wouldn’t be as large of an amount as my new equity after paying it off.
Most Popular Reply
@Robert Dunbar- thats sounds logical ...the max ltv for a cash out refinance rental is 75% .....get several rate / fee quotes as the loan fee ( points) will decrease for the higher rate options ....other than the rate being higher- the other " con " is that you begin paying interest on the entire loan amt the minute the new loan closes ...so if you have use for the funds right away - great ...but if you dont use the funds for awhile - its additonal interest paid .....if you need a loan oifficer to assist - let me know and I can refer someone to you ....also if you do this - allow the settlement agent to be the one to handle the closing of the HELOC as part of the refinance closing