All Forum Posts by: Casey Botts

so i would be basically taking out a home equity loan to secure down payment on a second house, then financing a conventional 30 year fixed.

So i would be paying my 1st mortgage (paid for +$1000 cash flow from renters) my home equity loan of 100k, and my 30 year fixed on a roughly 350-400k home

Im not savvy enough to know about adjustible rates and i have 0 credit card debt so the heloc scares me. I think a home equity over long term (10+ years?)would be best, with the option and intention of paying it back asap.  

Does this all sound like a decent plan, assuming income requirements are met and not a factor? Am i making the most out of my $? Is 20% down the best option or could i save on my home equity loan by taking less, putting down less, and paying more on my convential loan?

Is there a wrong answer here, or will anything pretty much be better than nothing?

thank you,

We want to rent for a year to figure out what neighborhood to eventually buy in, but the intention is to buy a 2nd in the long run. Right now our limiting factor is cash for the down payment but we are way under our means right now.

Long term i envision paying off our first in 12 years and keeping it as a rental. Yes i know all the income will be taxed at that point but i believe we will save more rather than paying the interest over 30 years. This is why i dont want to refi.

So to get a lump sum to put down for 2nd, i think a home equity loan would be safer rather than an adjustible heloc, correct? 

Hi, 

I currently live in Novato, CA where we bought a home 3 years ago that has gone up quite a bit in value. I have no experience in real estate. We are considering renting it out and moving out of state for a year to try something new. We currently have a 15 year fixed and owe 190k on it. Purchase price was 462k and its valued at 690k (zillow.) Renting will give us +$1000 cash flow/month.

We currently have 25k in savings acct, and want to buy 2nd home for around 325-450k. 

What is the best way to tap into equity to get enough money for down payment on 2nd home? We are looking at a down payment of 20% to avoid PMI, so roughly 70k-90k in cash to put down, plus potentially another 50-75k for improvements if needed.

I would rather not refi our first home. So options would be HELOC or Home equity loan, correct? How much should I put down on 2nd home, which will be a 30 year mortgage? Are rates low enough whereas PMI payments wouldn't really matter?

Thanks!