HELOC

[Michael Pullins]

Myself along with my wife have recently decided to REALLY make a push to continue our investment education and purchases. We currently own a few single family homes and a condo in which we currently live in. We are considering using some of the equity (in the form of a HELOC) from one of the rentals to fund our investments but have been told that HELOC's are only done on "owner occupied" properties. We have a lot of equity, so we are wondering if there were others in the same situation? What other options are available?

MODERATOR:  REQUESTS FOR LENDERS AND MENTIONS OF SPECIFIC LENDERS NEEDS TO BE IN THE MARKETPLACE, NOT HERE.

[Rafael Floresta]

I have done a HELOC successfully recently. I got it thru TD bank. All legit, as a investment property. They charged me 700 bucks for closing costs. If it was for owner occupied it would have been free. They did do a full appraisal, inside and out. The interest rate is variable (as with all helocs), and right now is about 5% (prime + 1%, I believe). If you use it all or a big part of it, you can roll to a fixed interest rate, which almost works as a 10y morgage.