All Forum Posts by: Jamar Brown

It might be better to explore financing options for the purchase, such as a hard money loan or private lender, and use your cash for the rehab. This way, you keep liquidity for the necessary repairs and can leverage the property’s equity for additional funding if needed. Consider getting an appraisal to understand the home's current value and equity to guide your decision.

HI Jamar,

You can always open HELOC or line of credit from your primary house or non primary house, assuming you have sufficient equity and income to qualify. You can obtain up to 90% LCTV for your main primary house that you are living or 80-85% for your investment properties. Rates are typically higher than a traditional cash out refinance, however at least you are not getting the full loan amount + you have the flexibility to draw/tap in the money whenever needed.

@Carlos Valencia @Albert Bui

It depends on the full situation but unless you have a great opportunity and don't qualify for a very good HELOC, its going to be hard to justify replacing a 3.25% interest rate with a cash-out refinance at todays rates

This is a math problem and you can def. get a clear answer. Just need a few numbers, specifically:

1. Interest rate you are being quoted on the HELOC and on the COR?

2. Current loan balance?

3. How much do you want to increase your loan balance / how much cash out do you want?

With this information, you can calculate the effective rate, monthly payments etc. for both and decide which is a better option for you.

If you look at the blended rate between your low-rate first mortgage and a higher-rate HELOC or HELOAN, many times you still come out lower than what a cash out refi would be. They both have a time and a place, it just depends on what makes sense for your situation. Happy to connect!