All Forum Posts by: George Otiono

I've been doing research on HELOC vs. Cash Out Refinance and I'm so confused.

In 2015, I purchased a property for $247,000 and lived in it for 1 year and 1 month. It is now worth $380,000 and I owe $199,000 on it. I do not live in the property now. According to Bank of America, I cannot get a Cash Out Refinance because it's not my primary residence.

As a result, I can only do a HELOC with my interest rate estimated to be a 5.17% (it's currently 4%).

I'm a little lost on how to proceed. I want to have enough money to make a down payment on a second home, but I'm not sure it's possible (re: smart) given my interest rate would increase by 1.17%. Am I assessing the situation incorrectly?

@Kyle J.

Thanks! Yea, I'm going to pull out using a HELOC. I have a phone call with them Thursday, but wanted to get some outside perspective, just to make sure.

In 2015,

I was blessed and purchased a house. I recently discovered BiggerPockets and realized the equity in that house, which is now a rental property, is worth about $129K.

I do realize that I won’t be able to take out 100% of that equity. Because of the pandemic, I was out of a job, but the rental was still be paid.

I want to pull out equity to make another purchase but just started a job last month. My question is: Do I have to have three months worth of paystubs to pull out equity?