What is the best way to free up equity?

[Peter Bras]

Good Evening Everyone. I have a property (SFH) worth approx. 190K and I currently owe 125K. What is the least expensive/best way to free up some of this equity to use on other properties? If HELOC is the answer, does it need to be with the same company that holds the 1st mortgage? Thanks in advance for any best practices you may have.

[Andrew Postell]

@Peter Bras is the property we are discussing an investment property or your primary home?  The reason why I ask is because the numbers will be very different between the two.  In most cases you will only receive a Line of Credit on your investment property up to 75% of the value of the property.  There are some cases where lenders could lend up to 80%.  So if 80% was the case, that would mean a maximimum of $152,000 in loans...subtract your $125,000...so your Line of Credit would be $25,000 or so.  It might be hard to find that lender though.  I think if you found a lender who only did 75% that would only give you a Line of Credit of $15,000.  Dunno if it would be worth it or not but it might.

I would suggest posting this in the California specific forum.  This product would need to come from a local lender close to your subject property so ask there and see if some locals can helps.  

HOWEVER, if this is your primary home then this discussion would be VERY different.  Tag me with any questions.  Thanks!