Heloc application primary residence before moving into next primary residence

[Evangelina Obana]

Hi my name is Eva and I am newbie  to BP and I am currently  on the process for my second home as a primary residence.

I wanted to ask if is it advisable to take a HELOC on my current primary residence now before closing in 2mos (brand new townhome) to my next property as a primary residence.Any input and sincere advised will be much appreciated.

Thank you,

Eva

[Jaron Walling]

A HELOC is powerful tool that should be used in specific situations. It's a bridge that creates opportunities to get creative or to make cash offers on RE. I don't know you're strategy but take caution when spending this money. People fall into the trap of spending without a purpose. Hopefully it's for a BRRRR, flip, or something RE related (assets); not a boat, car, or pretty much anything with wheels (liability). If the HELOC is being used to remodel or update the townhome I'd question why. Unless you're buying below market and adding value a renovation a lot of time a HELOC makes no sense. You're robbing Peter to pay Paul. The costs out way the benefits especially with these higher rates.

If you have a strategy for the $$$ open the line of credit. You're not obligated to spend it. That gives you time to find/buy/create good deals. Best of luck!