All Forum Posts by: Chris DeMello
Chris DeMello has started 5 posts and replied 54 times.
Post: My Dilemma: Refinance my home or sell it?

- Investor
- Las Vegas
- Posts 59
- Votes 22
@Diana Muresan Here in Hawaii, we have great teaser rates. My HELOC rate is 2 yr 1.75% interest only payments. I would have paid $20k in interest over the past 2 yrs. Instead I paid $7k in interest, and still had access to money while paying down over $50k in that 2 yrs. Thats why I didn't refi cash out. I just extended my HELOC one more yr at 2.5%, and yes, its a variable rate that can go up to 20%.. But, it can't go up more then 2% per yr. So it will need to get up to about 12% before I start paying the same in interest as a 4% amortized mortgage.
I'm sure you know that the word mortgage means "death pledge". LOL.. I think mortgages is great, and I wouldn't be a home owner without it. I just don't like sticking to the amortized "death" schedule. I feel I have more control over my debt, and I have my money working harder for me!
Post: My Dilemma: Refinance my home or sell it?

- Investor
- Las Vegas
- Posts 59
- Votes 22
@Lane Kawaoka Yes, that would be great! I'd love to get more info, and learn to earn more passive income.
Post: My Dilemma: Refinance my home or sell it?

- Investor
- Las Vegas
- Posts 59
- Votes 22
@Diana Muresan First position HELOC's are based on LTV, not on the equity. Here in Hawaii, banks allow HELOC's ranging 80%-90% LTV. Should your property appraise more than what you owe, you can get a first position HELOC and buy out the existing mortgage, taking it off the conventional amortization schedule. HELOC's are simple interest revolving loans which monies may be used towards real estate transactions (down payment, etc.).
Example of my first home:
- Purchase $245k USDA loan. (Mortgage $1400) Value $250k
- Lived in for 1 yr. $10k rehab
- HELOC for $270k 1st position. Paid off $237k mortgage. Value $300k. 90%= $270k
- Took $18k for 5% down on second home.
- First home rents for $1800. HELOC interest only payment is $300 per month, so $1500 a month pays down my HELOC. We also bank out of these lines, and we're on target to pay it off in 5 years.
Here’s a quick video on why we do what we do: 101financial.com/peace
Post: My Dilemma: Refinance my home or sell it?

- Investor
- Las Vegas
- Posts 59
- Votes 22