Prepayment penalties- usually 1-5 year terms.

Readers should seek professional advice.

Yes you are giving up a rate that you probably aren't going to see again anytime soon, but as long as you aren't locked into an extensive penalty period you can always refi again if rates plummet to the point that it makes sense to do so. 

Readers should seek professional advice.

@Matthew Mclean May not apply to your loan but for others that read this they may need to make sure there is no pre-payment penalty.

Hey fam!
I'm Daniel, a complete newbie in this field, to be quite honest. But my background and experience is in Business Development, and Marketing Strategy in close integration with sales, so I figure I at least h...

A Heloc is a open end mortgage like a credit card so its an additional trade line on credit, cannto never be used as an Asset, PITI reserve, and its a DTI killer in most cases.A heloc is also usually set up on a shorter term versus a mortgage, carries a Higher interest rate, and most carry a interest only with a prepayment penalty.

If you get it wrong, the penalties will get costly quickly.All the best!

However, keep it on hand as helpful information overall, and I'd recommend if the daughter starts to destroy the property, etc, that you seek that legal counsel.

One of the investors we are working with has a score around 680 but is looking at high 6's with a one year prepayment penalty.