HELOC, HELOAN or something else for personal Home renovation

[Agustin Conti]

I have 2 investment properties that are doing really well and give me some cash flow (on top of paying both mortgages). Before thinking of going for the 3rd one, which would be great if it goes as well as these two, I need to fix my own house (personal) . Long overdue little things and not so little things. I am exploring the possibility of not only fixing things but doing a renovation to bring an old half bath into a fully functional bath, renovate the entrance and foyer among other things and possibly even an addition to the house. Somewhere around $100k to $150k ballpark expense. Besides making our house prettier and more comfortable, something we can enjoy while we are here after the renovation, all these things will certainly add a lot of value to the house. We estimate 3 to 4 times the amount of the loan by the time we plan to sell the house in about 5 to 6 years. I still owe about $238k on the house (I am paying around $2k per month including escrow) and the bank says it appraise for $850-900k so plenty of equity to borrow. After doing a quick search..I get numbers around 9 to 10% interest for these HELOC loans that I found insane. Any ideas or recommendations as to where to go for financing this kind of project.

Regards,

Agustin

[Corby Goade]

HELOC is almost always the best option. Rates are variable, so it's very likely that those will come down soon. Also, they don't cost anything to close and you don't pay a penny unless you use them. There's no cheaper product- don't let the rates throw you, you'll save thousands with a HELOC.