Primary Residence Refi to a heloc

[Justin Lee]

Hi,

I want to pay off my current mortgage balance and open a HELOC to do so. Is this possible?

Ex. Open Heloc to pay off the first mortgage and utilize the rest as a resource to fund other deals.

[Cameron Tope]

Hey Justin,

You don't need to pay off your first mortgage to get a HELOC - as long as you have enough equity and met the lenders LTV requirements.

Example: your current mortgage is 30k and your house is worth 100k. The lender will provide a HELOC up to 80% LTV (80k in this case) so your lender will provide you a HELOC for 50k (80k - 30k).

Not all lenders will do this but it is definitely a commonly used financing technique.