All Forum Posts by: Andri Grullon

@Eric L. that’s a great idea, I hadn’t thought about putting the money in a high yielding saving account to help with the interest I’ll be paying. I’ll definitely consider that if I decide to move the money outside of the heloc.

Also Cj m I called my Huntington rep and asked her directly if they could close my account her answer was “they shouldn’t close it” but I was not very convinced with her answer. I am not sure if they could close it or not but I feel like if my house goes down in value they just might.

John in my market here in Grand Rapids Michigan houses are still expensive they haven’t come down one bit but who knows the future. I’ve been doing lots of research about the topic and I feel like a lot of people that may lose their jobs are going to be foreclosed one. I really hope for the best but planned for the worst.

Thanks for your comment Peter and Jaron.

To answer some of the questions, the HELOC is only costing me $60 per year no other charges and I did not pay to have it created. Also I am able to take all the money out no questions asked and there is no fee either just have to pay the interest they'll be charging me monthly. I agree it'll be better to take the money out once I've found the house and not be throwing away $440 every month. Now $440 would have an affect in my budget I wouldn't want to lose that money just for the possibility of getting a good deal later.

About shorting the stock market, I don’t trust it enough to invest in it. I feel like real estate is more reliable and we have more control.

Hello BiggerPockets members. I hope everyone is staying healthy physically, mentally, and financially.

My question is the following: If you have a Home Equity Line of Credit(HELOC) would you consider transferring the balance to your bank account? Yes, I would have to pay interest rate on it every month, but I don't have to worry about the bank closing my HELOC if my home loses value. My hope is to have cash available to invest if homes go down in value as predicted in a few months.
 
Few Specifics:

-I own a small business which is affected by covid19

-My credit score is above 750.

- I had to use my father as a co-signer to get approved

-I have a HELOC total of $150,000 (using my home and my rental)

-Interest rate is between 3% -4%

-If I transfer all of it, my monthly interest payment would be roughly for $440

I know there is a chance they might not closed the line of credit, and in that case I would be losing that amount every month. 

Is that monthly expense worth the guaranteed of having access to that amount for future investments?

I appreciate your thoughts and input on this idea. 

@Kiwi Mills thank you this helps clarify.

Hopefully I don’t have to sell in order to invest.

My idea is once I get a deal to use that money then refinance the new house and pay off the line of credit.

Then rinse and repeat.

In the market I am my two houses are worth more then $100k but the appraisal says it’s only $100k so they are letting me borrow $75k on each house.

@Corey Hawkinson thank you very much that answers my questions. So even if I am using them both at the same time is not like I am paying 10 percent. Is more like paying 5 percent on all my loans.

Hello everyone, I have two HELOC one at 4.5 interest and the other at 5.5 interest.

My question is am I paying a total of 10 percent on both loan or an average of 5 percent on my loans. The cheaper line of credit is on my personal house, the more expensive one is on my rental house. I currently don’t owe anything just wanted to have it available to take advantage of future opportunities when I find a deal. Thanks in advance for your input.

@Joshua Wine hey there, I invest in Grand Rapids and would recommend investing in Kalamazoo.

Grand Rapids houses are too over priced and it’s very difficult to find good deals.

Kalamazoo on the other hand houses are cheaper so you can get better deals.

I wish to be familiar with Kalamazoo so I can invest over there.

@Hilaree Fraly hello there, I would say go for it, if the numbers make sense go ahead and do it.

It sounds like instant equity which you can use to refinance the house and get your $20k back and rent the property.

I am also from Michigan, Wyoming to be specific and my previous landlord sold me the house I rented from them.

So far it has been one of the best decisions my wife and I have ever made.

 I think that's the best solution, this way everybody wins and they don't trash the place.

James thank you so much for your input. I will rewrite the letter showing less attachment. also the address and names are not real. and thak you for the link of the form you post it I will also use it.