Hello. I own a home (that I live in) worth 400k. My loan is down to 130k. This means I have about 270k of equity. How much of this 270k would my lender generally allow me to borrow out on a HELOC? All of it? some of it? I’d like to take that money and use it as down payments on investment properties.
Is the HELOC a lower interest rate usually than an unsecured line of credit?
Depending on the state you are located in you can take out a HELOC up to a 100% LTV. Although the rate may prohibitive at an LTV like that. The rate on your HELOC will be based on occupancy, credit score, and LTV. Hope this helps.
Major banks like Bank of America, Citibank, etc are great for HELOCs since low or no cost many times. They can give high LTV’s but will have factors like FICO and income. You can get them as interest only and are used like a checking account. When you need the money you write a check so you pay for what your using only…