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HELOC or new mortgage?

I am 1 out of 3 owners on a $300k property that is completely paid off. I am looking for financing options to buy-out the other 2 parties. What is my best option for the $200k? by soboyara297 from Golden, Maine. Jun 30th 2017 Reply


Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

Most likely a mortgage will work best, it will be considered a cash out refinance. A HELOC has less fees but your payment will be more and the rate could change quickly if rates spike. Also depends how you use the home, if you'll live in it, as a vacation home or rental.

Jun 30th 2017
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A cash out re-fi to 60% of the appraised value of the house will give you the best product. Especially if you have a 740+ credit score. This will leave you with $12,000 to still come up with to pay off the other owners. You can go to 66% but you will have loan level pricing adjustments which means a slightly higher rate. I recommend the loan to 60% and if you don't have the 12k then get a small HELOC at a local bank for the rest. Super easy. I can walk you through it if you want to call me. (207) 671-8292.Will

Jun 30th 2017
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Mark Maroon (mmaroon@primeres.com)
#12 ranked lender in Maine - 9 contributions

I would have an appraisal done by a lender such as us or others. We are Maine based in Scarborough. the least expensive way would be a purchase with gift of equity. Please be aware that although you all may think it is worth $300,000.00, the real number will be different.I would split the value of the house three ways once you know the value and each split the actual closing costs not including escrows. The reason is if you were to just sell it you would be paying a Realtor and other costs.Another piece of advice would be the have an inspector go through the house and fix anything that needs to be done. It shouldn't be you that carries all the costs that were pre-existing. Feel free to call if you would like additional information.207-615-2222

Jun 30th 2017
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Mark Maroon (mmaroon@primeres.com)
#12 ranked lender in Maine - 9 contributions

I would have an appraisal done by a lender such as us or others. We are Maine based in Scarborough. the least expensive way would be a purchase with gift of equity. Please be aware that although you all may think it is worth $300,000.00, the real number will be different.I would split the value of the house three ways once you know the value and each split the actual closing costs not including escrows. The reason is if you were to just sell it you would be paying a Realtor and other costs.Another piece of advice would be the have an inspector go through the house and fix anything that needs to be done. It shouldn't be you that carries all the costs that were pre-existing. Feel free to call if you would like additional information.207-615-22220 minutes ago

Jun 30th 2017
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Michael Diaz (sincityloandr)
#59 ranked lender in Nevada - 25 contributions

Depends on how long you do you plan keeping the property?If less the 5 years I would take a 5/1 arm, if long term just do a 210k refi on a 30 year fix

Jul 2nd 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,008 contributions

More info needed, but in general, a 1st position HELOC will probably be your least expensive route.. you apply one time and have unlimited access to your home's equity during the "Drawing Period" (typically, the first 10 years).. the only closing fee is typically a processing fee of $300 to $500.. All HELOC's are variable rates.. and typically, are "interest only" during the drawing period.. so your payments will be lower.. However, for HELOC's, the IRS only allows you to write off the interest for the first $100K.. For this reason, even though the costs would be less, your far better off getting a mortgage and write off 100% of the interest.. Talk to a local mortgage expert or your financial/tax adviser for more details. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Jul 5th 2017
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