All Forum Posts by: Mark Cole
Mark Cole has started 2 posts and replied 12 times.
Post: Should I pay off my loan or LOC??
- Investor
- Parkville, MD
- Posts 12
- Votes 1
Originally posted by @Tim Schroeder:
Originally posted by @Mark Cole:
Originally posted by @Tim Schroeder:
Pay off all the high-interest loans then get a new loan at a decent interest rate to fund your future investing. Run, don't walk, to pay off that 13%. The other one is borderline, I guess.
Thanks for the reply Tim. SO the fact that one is a LOC that will be readily available again once balance is paid shouldn't be considered in this instance?
The fact that it's readily available again after it's paid off is certainly handy but not really a factor IMHO
Thanks for your advise Tim.
Post: Should I pay off my loan or LOC??
- Investor
- Parkville, MD
- Posts 12
- Votes 1
Originally posted by @Nathan Gesner:
Originally posted by @Mark Cole:
A line of credit is no different than a credit card. You are borrowing money and then making payments at a high interest rate.
Most people use the line of credit to make purchases quick and easy, not as a long-term loan. They refinance as soon as possible, pull equity out of the property, and pay the line of credit back down. Rinse and repeat. This ensures they are never paying high interest for a long period of time.
Paying the line of credit down would be nice, but then you'll still have $20,000 on your credit cards. Just because that's at a lower interest rate doesn't make it any wiser. Instead of saving for your purchases, you are borrowing money from someone else and then paying interest. It's not a good move financially.
I would pay off all the debt, starting with the highest interest rate first. Don't touch the line of credit until all debt is paid off and you've proven yourself financially responsible.
Thank you very much Nathan. I appreciate the advise.
Post: Should I pay off my loan or LOC??
- Investor
- Parkville, MD
- Posts 12
- Votes 1
Originally posted by @Tim Schroeder:
Pay off all the high-interest loans then get a new loan at a decent interest rate to fund your future investing. Run, don't walk, to pay off that 13%. The other one is borderline, I guess.
Thanks for the reply Tim. SO the fact that one is a LOC that will be readily available again once balance is paid shouldn't be considered in this instance?
Post: Should I pay off my loan or LOC??
- Investor
- Parkville, MD
- Posts 12
- Votes 1
Originally posted by @John Underwood:
Pay off the high interest loan first.
SO the fact that the 12.99% one is actually a LOC doesn't matter? If I pay off LOC i will still have cash available in the LOC for future investments is what I'm thinking. Is that an idea?
Post: Should I pay off my loan or LOC??
- Investor
- Parkville, MD
- Posts 12
- Votes 1
Hello BP family. I have two major debts a 21K balance on a loan that i have at 6.99% interest and a line of credit with a 28k balance and 12.99% interest. I did a flip and made 40K. I truly want to invest in another property but i also want to get this debt down. So Im trying to decide should i pay off the loan and be done with it and continue to make LOC payments or should i pay off the LOC and contunue making loan payments ?? I am thinking paying off LOC which will still give me access to the LOC funds and continue making loan payments?? I know its a smart way to do this and I know this is the place to find out how. Thanks in advanced.
Post: A successful (barely) first flip!
- Investor
- Parkville, MD
- Posts 12
- Votes 1
Looks great!! Thanks for the post
Post: Should I sell My Rental??
- Investor
- Parkville, MD
- Posts 12
- Votes 1
@Corby Goade I had a real problem with the terms and limiting my access to only 70% of my equity as well as fees galore. Maybe thats just the cost of doing business but I don't like it lol..thanks for the response
Post: Should I sell My Rental??
- Investor
- Parkville, MD
- Posts 12
- Votes 1
@Jake S. I have sat down with a couple of banks. I mainly discussed cash-out refinances and after only able to access 70% LTV (atleast the 2 i tried in MD) then the fees on top of that it just didn't seem feasible to take the cash out.
Post: Should I sell My Rental??
- Investor
- Parkville, MD
- Posts 12
- Votes 1
@Terry Lao unfortunately the 10 year equation would be a no. thanks for the feedback
Post: Should I sell My Rental??
- Investor
- Parkville, MD
- Posts 12
- Votes 1
I have a couple rental properties that are cash positive. The one that I am focused on appraises for 155K and I have a 75K mortgage balance. Problem is trying to tap into the equity to invest in other properties or even just kill off some debt, has been a journey. Whether a HELOC or Cash-Out Refi, bank fees, processing time and just the loan process has become a joke. I'm stuck with either accept these ridiculously disrespectful bank loan termsto try and grow or sell the property and take all the cash and do what I have to do. I really don't want to sell my property but I want to grow. Is this a case where i have to take a step back (sell) to take two steps forward (re-invest)? Any suggestions would be great.