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I own my home free and clear, would it be better to do a HELOC or a cash out refi to purchase 2nd home?

by kay.stevens587 from Temple, New Hampshire. Oct 27th 2016 Reply


Steven Karp (stevek81)
#29 ranked lender in Massachusetts - 121 contributions

Hi Kay...Heloc's are adjustable rate equity lines....why not a regular conventional loan on the second home ? or, Are you asking if you should pull money out of the first as a down payment to buy the second ? and do either a conventional or heloc ? It will depend on how much you need, but yes, you can do either....fixed rates are better that Helocs though, unless you can pay the Heloc off quickly and not carry it for years

Oct 27th 2016
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Hello,I would recommend a Refinance cash out..You may call 603 595 7699 for assistance.

Oct 27th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,938 contributions

First, the better way to go would be to take out a first position mortgage on the new property, and leave your existing home alone.. Better yet, buy it as an investment property and rent it out a few months a year, and get the maximum write off potential. But if that's not what you want to do, then only other options are a HELOC or refi on the primary to purchase the 2nd home, and out of these two options, I would say a HELOC would be best.. with a HELOC, the loan costs are very low.. typically less than $500.. and you apply one time and have unlimited access to your equity/funds for the next 10 years.. and you don't have to re apply each time you use it.. Also, if you use the HELOC to buy a new home, then just like a credit card, as you make payments on the HELOC, you open up your credit line which can again be tapped into.. HELOC's are variable rates, and typically right now are slightly less than a fixed rate 1st position mortgage. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 27th 2016
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Sherry Falk (Kittjx)
#340 ranked lender in Florida - 2 contributions

If you re looking for your second home as an investment property, please contact me at 407-487-4744. We have different ways of financing this.

Oct 27th 2016
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