Quote:
Originally Posted by jdacunha
I own two (2) family homes with amount $200k in equity from both. I have enough cash to buy a property in cash, which I plan on knocking down. I need to use the equity lines to pay for my construction costs to build a new 1 family home. I plan to "cash out" of the new property into a primary mortgage once construction is done. That will pay off my two lines of credit.
I don't want to do a cash-out refi because I only have 11 years of mortgage left on both properties. The rates are 3.125% and 3.75%. I don't want to go back out to 15-30 years.
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OK,agree you could never get those rates again.
I would check out the local banks in the area of your properties.
They are much more flexible and easier to deal with than the big banks.
Most smaller banks will give 2nd mortgages fixed or adjustable but are strict with the Debt to Income Ratio
and you must have a high credit score.
Also the fees and rates are going to be much higher than a residential HELOC and qualifying will be much harder.
Even though you want to pay it back in a year I would not take a short term loan with a balloon in case things don't go as quickly as planned.