All Forum Posts by: Gabriela Peres Ramirez

Having the same issue. 

Trying to decide whether doing a cash out refi of $380k on our primary to cash out $200k (2.625% (2.74%APR) about $8k closing costs that would reduce my cash out amount) or doing the choice heloc product from PNC bank (no closing costs). With the Heloc I can get on a 30 yr installment plan to pay off current mortgage of $178k with a fixed 3.34% APR and leave the remaining $200k as back out for a future vacation home purchase we are searching for. Since we are not in a buyer's market, I see myself taking another 6 months or so to find a good deal, and paying interest on the refi may not be a good idea. But at the same time, by the time we find the second property, APR on the HELOC may be way higher and my credit will be impacted by the large unused credit line.

Any thoughts?

I am a Transportation and husband is Structural engineer. People tell us to invest in stocks and we can't find the romanticism of buying, fixing and selling homes in buying and selling virtual stocks...

Would it be worth to buy that many points? 35 basis points in this scenario is adding to about $10k. We also got a quote of a 2.635 rate at 1.15 bps points which is about $3.5k. Does it make sense to buy the rate down for that amount or cash out the difference for a future investment?

Originally posted by @Kush Khandelwal:

I looked at the same situation recently. The HELOC rate that I was quoted was way higher, over 5-6%. However the 30 yr fixed rate I'm looking at is much lower, at about 3.5 % for the cash out refi.

What HELOC rates are you seeing?

HELOC is 4.9% right now.

Thank you all for the responses. It looks like we are going with the refi. 

Hi BP! Considering making use of current low interest rates to refi our primary residence, lower our interest rate (currently 3.75%) and set aside cash for a future investment opportunity (airbnb) that we are looking for the right unit. 

To give you some numbers, we currently owe $175k in our home that is valued at about $480k and we paid 5 years of our 30 yr mortgage.

We are being offered a new 30 yr mortgage at 2.25%, paying 35 bps.

Since we don't have an opportunity in sight, and it may take 6 months or more for the right one to come, we are wondering if it is worth to cash out or if maybe a heloc is a better option.

Thanks in advance