Hi BP family! I am looking to purchase a primary or vacation property. I have about $80k equity in the investment property.
My questions are: Which method should I use as a down payment to buy the next property? (I plan to put down a 5%-10% conventional loan for the secondary house)
1. Use my cash in the bank as a down payment or
2. Cash-out refinance from my current Investment property or
3. Home Equity Loan or
4. Take HELOC from the investment property?
Please help me figure out which method you would suggest using to purchase the next property, and let me know if there are tax deduction benefits for cash-out refinance vs. HELOC. Appreciate your time and responses.
Lender · Rosenberg, TX · Member since 2022 · 287 posts · 130 votes
4y
From a lender's perspective, you have identified 4 ways to make this purchase, you need to see the entire cost breakdown. Once you get all information on cost, then decide what works best for you.