| home equity line of credit on rent house to buy new house? |
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c3troop
New Member
Cash: $ 1.15
Posts: 5
Joined: 26 Jun 2012
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| home equity line of credit on rent house to buy new house? |
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So my wife and I want anew house and we currently have one rent home and the one we live in. unfortunately since we are going to rent the second home too we won't have the cash flow for a down payment on the house we want. Is it possible to get a heloc on the second rent house to use that money as a down payment on the new home? One rent house had 20,000 equity and the one we are in now that will also be a rent house had 30,000 equity. What options do we have to but ourdream home?
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Sat Jun 30, 2012 3:17 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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A lender will help move your equity around to reach your goal. With my houses, I try to get the longest term, lowest rates - ie, I use only 30 yr fixed rate loans. And your Owner-Occupied house qualifies for the lowest rate, probably 4%. Your two NonOO houses will have a NonOO premium of about 3/4% - ie, $.75% to 5% loans.
I would try to get as close to a 100% mortgage on the new house as possible, that is your biggest source of low cost capital. If that can't be done, then refi the house that has $30k equity and apply some of that.
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Sat Jun 30, 2012 4:43 pm |
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