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Since I don't borrow money I don't need, I would never borrow it in the first place.
If I received a gift of $400,000, then there is income tax to pay on it and the balance is almost enough to buy a 1/3 acre lot I have my eye on and partial pay for a house on it. Of course, I could just take out a mortage on the new property and not put my own residence at risk. Also, I could get a fixed rate mortgage.
I really dislike borrowing at a variable rate, especially an amount like $400,000 where it would be difficult to repay it in a lump sum if the interest rates soared.
So you'd use the 400k HELOC to pay off the 400k HELOC?
Read much?
It seems like every thread you start you have some smartassed response to someone who has replied. I'm not sure if this is your intention to do nearly every time or if just your nature
Thanks everyone.
So none of you would recommend purchasing a rental property or two, paying only minimal interest that's significantly lower than the collected rent?
The market in northern Virginia is pretty solid and rent on a 350k house is as high as 2300 with a interest only payment of 800 plus 300-400 in taxes.
Thoughts?
Worst case scenario would be selling rental and or fixing the rate if there's a hike.
Thanks everyone.
So none of you would recommend purchasing a rental property or two, paying only minimal interest that's significantly lower than the collected rent?
The market in northern Virginia is pretty solid and rent on a 350k house is as high as 2300 with a interest only payment of 800 plus 300-400 in taxes.
Thoughts?
Worst case scenario would be selling rental and or fixing the rate if there's a hike.
Sounds remarkably like 2004-2008 in Florida. GL with that OP.
Thanks everyone.
So none of you would recommend purchasing a rental property or two, paying only minimal interest that's significantly lower than the collected rent?
The market in northern Virginia is pretty solid and rent on a 350k house is as high as 2300 with a interest only payment of 800 plus 300-400 in taxes.
Thoughts?
Worst case scenario would be selling rental and or fixing the rate if there's a hike.
Why not get an actual mortgage on said property? Why compromise your current property with a heloc for a second?
Thanks everyone.
So none of you would recommend purchasing a rental property or two, paying only minimal interest that's significantly lower than the collected rent?
The market in northern Virginia is pretty solid and rent on a 350k house is as high as 2300 with a interest only payment of 800 plus 300-400 in taxes.
Thoughts?
Worst case scenario would be selling rental and or fixing the rate if there's a hike.
We would buy investment property - but would not have HELOC. With $400K - would buy more investment property - would fund daughters 529 - would travel around central Texas to find the piece of property that we like and buy it and begin building our retirement home.
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