Cash Out Refi Vs Equity Line
I have a rehab project that I just finished and had appraised for the cash out refi. We are talking to two different mtg companies and are getting two different programs thrown at us. I plan to rent the unit out.
1. A non-seasoning cash out refi at 90 % LTV at about 6.75% I/O.
2. The other mtg company says it cant do a non-seasoning cash out but can do an investor loan with no pmi at 6.25% P & I with an equity line up to 30K. (the cash out amount was going to be about 35-40K).
Closing costs are about the same on both. Rate on the HELOC is prime.
Which is the better way to go? Advantages? Disadvantages?
Suntzu18
I think this post may be in the wrong section.
What section should it be in?
Try dumping it in the "Bird Dog / Beginners Forum."
I would probably go with the option that give me the best net cashflow. But need more details.
Any call periods? how long you plan on holding property? HELOC & income Tax... Any other restrictions?