All Forum Posts by: Betson M.

Betson,

You are probably better off using a DSCR program to take the cash out at 75% LTV. A HELOC is going to be a nightmare and offer in most cases 60-65% CLTV (If you find a bank) that will do Heloc investment. If you do be prepared to have a rate of 9.50% or higher which in most cases would be a higher payment than if you simply refinanced and lost the 2% rate.

You may also have road blocks with a HELOC that a cash out refinance would not have due to cash in hand and one loan. A HELOC cannot be used as Reserves or assets and PITI assets are required when you buy more REI.

When you look at the blended rate having a HELOC and a 2% rate again it usually causes a higher payment over a simple refinance. Heloc is generally 10 or 15 years amortization verus a 30 year mortgage with the lower payment.