HELOC on Primary Residence vs. Investment

[Julie Marquez]

Banks have different terms for their HELOC lending for primary residence versus investment, giving more borrowing power and a lower interest rate on the primary residence. Let's say I get a HELOC on my primary residence. Then, a couple months later, I move out making the home an investment property. I already have the HELOC in place, but is the bank going to find out and change their terms now that the property is a rental?

[Darren Eady]

IF the bank found out you moved, they would not change their terms, but would require a pay-off to occur. The strategy you are inquiring about is used often. Your primary residence is your primary residence because you have the intent to live there. If your intent changes after you take out a HELOC, and you move, and keep making your payments, chances are the bank will not care where you are living.