refi or heloc - Posted by Len

Posted by Carlos (VA) on August 28, 2006 at 19:34:31:

ok… thanks for the clarification… =^)

refi or heloc - Posted by Len

Posted by Len on August 26, 2006 at 12:12:49:

I borrowed $ 55,000 cash from an investor and bought a house. Remodeled it and appraises for 85,000. I need to pay off this loan ASAP. Found a tennant buyer with shaky credit who wants to L/O and purchase. What is the best way to pay back investor and be able for couple to purchase house in 1 year? Thank you

Re: refi or heloc - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on August 26, 2006 at 16:15:22:

I agree with James that you should refinance, but I suggest you “rate term” refinance the 55K at 65% LTV and then open a HELOC at 90% CLTV.

If you follow this path you will have the lowest principal and interest payment available on the 55K and only have to pay interest on the monies used on the HELOC (21.5K).

Overall you will have a lower payment and more capital available to you should you need it.

Re: refi or heloc - Posted by James Harris

Posted by James Harris on August 26, 2006 at 13:45:06:

Len, I would suggest that you obtain an 80% cashout refi. That would be roughly about $10-13k to you from the refi; then cash from the t/b plus a monthly income. The way to go, I believe.

Re: refi or heloc - Posted by Carlos (VA)

Posted by Carlos (VA) on August 28, 2006 at 18:17:55:

Hey Patrick, what do you mean by:

“rate term” refinance the 55k at 65% LTV?

LTV is 65% - 55k/85k … What is “rate term” refi?

thanks…