Moving up in house advice please

[Omeed O.]

Located in Houston tx We want to buy a bigger house without selling Current home.

One rental fully paid value is $100k. Rents for 1300 monthly.

Current home has 180k loan 15yr mortgage about 25000 equity.  We made alot of improvements but have not had a new appraisal done.

I was thinking to HELOC the rental and refi my primary to 30 yrs. Not sure how to go about this in order to get another home. What do you think?

[Omeed O.]

Originally posted by @Jerry Padilla:

@Omeed O.

Rates are really low right now and it is a great time to consider refinancing or cash out refinancing properties. 

For your investment property, if it is a SFR you can cash out refinance at an LTV of 75% and if it is a MFR you can cash out refinance at a rate of 70% LTV.

Not sure what your rate is at on your current home, but hopefully you can lower your rate as well as lowering the payment. 

Why do you prefer refi vs HELOC? How would it effect by DTI ratio in terms of getting approved for another mortgage