Heloc vs conventional mortgage for duplex

[Moncy Samuel]

Hello BP Need some advice on the financing side of duplex property that I am ready to close before end of the year. I reached out to my lender for a conventional mortgage for the amount of $61k (purchase - 25%) and he quoted me 4.75% rate for 30 year with a closing cost of $4k. I have a Heloc (line of credit) where I can do a cash purchase without any of the closing costs. The Heloc is variable rate interest. Because of the small loan, the Lender fees is high and It tough to take a decision to move forward with loan or cash purchase. I would like to hear from you if you had such situations and how you handled

[Brent Coombs]

Originally posted by @Moncy Samuel:

Hello BP

Need some advice on the financing side of duplex property that I am ready to close before end of the year.

I reached out to my lender for a conventional mortgage for the amount of $61k (purchase - 25%) and he quoted me 4.75% rate for 30 year with a closing cost of $4k.

I have a Heloc (line of credit) where I can do a cash purchase without any of the closing costs. The Heloc is variable rate interest.

Because of the small loan, the Lender fees is high and It tough to take a decision to move forward with loan or cash purchase.

I would like to hear from you if you had such situations and how you handled

Why not use your HELOC for the 25% deposit, and go with the 30 year loan for the rest?

ie. You don't need to use any of your own cash!

If it's a good deal, you should never have to leave any of your own cash in any deal, for long!