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re: Where can I get a HELOC if I have two mortgages on my house?
Posted on 8/16/17 at 8:40 pm to AndyJ
Posted on 8/16/17 at 8:40 pm to AndyJ
Why would you not refinance the 1st mortgage? Your current 15 year is at 3.5. Depending on your equity/Loan To Value, a refinance cash out (paying off current 15 and giving you max cash to 80% LTV/CLTV would be a new 15 year loan at 3.5%
My rate today is 3.5%. You would not have a higher rate and you can get get the extra cash out and still only have 2 mortgages.
Edit: I would only use the above option if you actually need the money. If it's in case you need money, then look into a personal line of credit. Rates can be in 6% range, but you only pay back on what you draw as you know. Or see other answers regarding emergency distribution from investments.
My rate today is 3.5%. You would not have a higher rate and you can get get the extra cash out and still only have 2 mortgages.
Edit: I would only use the above option if you actually need the money. If it's in case you need money, then look into a personal line of credit. Rates can be in 6% range, but you only pay back on what you draw as you know. Or see other answers regarding emergency distribution from investments.
This post was edited on 8/16/17 at 8:56 pm
1
Posted on 8/16/17 at 11:40 pm to SomethingLikeA
Before trying that, he should make sure that the current 2nd lien holder will agree to subordinate and remain in 2nd position. Otherwise, when he refis the current 1st, it moves to 2nd and it's doubtful that he'll get the same rate.
And anyway, I don't agree with thinking of a HELOC (or any line of credit) as a true emergency fund. If you have a dire emergency or there's some sort of economic shock, that line of credit can disappear instantly. To me, an emergency fund is my money than can be accessed on my terms - not someone else's money than I can borrow (maybe, possibly, hopefully).
And anyway, I don't agree with thinking of a HELOC (or any line of credit) as a true emergency fund. If you have a dire emergency or there's some sort of economic shock, that line of credit can disappear instantly. To me, an emergency fund is my money than can be accessed on my terms - not someone else's money than I can borrow (maybe, possibly, hopefully).
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