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Updated over 4 years ago on . Most recent reply

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Tyler Robinson
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Votes |
5
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The Perfect fixed rate Mortgage HELOC Hybrid?

Tyler Robinson
Posted

I've been contemplating how to maximize my access to cheap debt. I currently own over a million dollars in single-family rental properties and have a secondary HELOC on one of them which is allowing me to access some of the equity in just one of the properties. My frustration is that I would like access to more of the equity inside some of the properties which is in there due to years of appreciation and due to the principle mortgage paydown but I would like to not have to refinance or finance a new HELOC each time I want to access more of this equity. I'd also like to lock in an inexpensive fix rate not just have a first lean variable HELOC.

Does anyone know of a Bank or financial institution which would allow one to lock in a Fixed rate mortgage and a Type of Secondary lean HELOC at the same time? The perfect product would then allow me to access more capital from the HELOC as I pay the fixed-rate mortgage each month equal to the principle paydown amount. The perfect product would also allow me to get reappraisals every so often to access more asset appreciation if I opted for that. This would give me the benefits of the cheaper fixed rate aswell as maximum access to capital all in the same product through the same Institution? I think it would be a big win for the bank aswell because they would get the mortgage and the HELOC Interest money when I access it both with the security of being the primary lean holder. If this is a thing I'd love to hear about it and to whom i need to talk with to get it!

Most Popular Reply

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974
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Joseph Firmin
  • Rental Property Investor
  • Smyrna, GA
645
Votes |
974
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Joseph Firmin
  • Rental Property Investor
  • Smyrna, GA
Replied

Sounds like you need a business line of credit with your equity as collateral. If you could get a 1st lien position HELOC on some of these properties, that would unlock all of your equity on each one, but you'd have different HELOCs.

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