All Forum Posts by: Elle S.

Hey this is a really good question and one I've spent hundreds of hours looking for the answer to over the past few months. I've called banks and credit unions across the country and a HELOC on an investment property is like trying to find a unicorn right now in this sort of doom-and-gloom market with everything going on. I have the same reasoning as you in that I don't want to cash out refi my sub-3% rate.

Some options:

Fifth Third Bank but if I remember correctly they require a 60% LTV.

Vectra Bank but they are in CO. 

Quorum FCU. Heard they could take up to 3 months to close if they ever do.

Sorry that's all I got after months of calling everyone and their dog.

Anyone who recommends a HELOC on an investment property you already have clearly hasn't scoured the market like I have looking for one of those. Banks and credit unions have pretty much stopped offering these since rates shot up. I'd love to be wrong but I called all over the country and just couldn't find that as a product

That being said, taking out a loan against a 401k or brokerage account is a great low interest option. Low risk for the bank, lower rates than any other loan you can secure, and a little liquidity if you need it for down payment. I have no advice on how to find a good deal in the Smokies though, sorry. Good luck!

I wouldn't cash out refi. Is there another way to pay back your family member? Will they go for letting you pay it back at a certain interest rate like an installment loan or do they want their entire $70k back?

Instead of selling the stocks, have you considered a Loan Management Account (LMA)? You can take out a low interest loan against your brokerage account. These loans have pretty favorable terms since the stocks in your account are the collateral if you default so reach out to your brokerage. Alternatively, you can take out also take a loan against your 401K as well via your 401k servicer. Both of these options allow you to keep your securities invested in the market, charge a much lower interest rate than HELOCs/personal loans/today's rates, and are only taken out of your investment accounts if you default on the loan. Sounds like the better middle ground.