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Home equity loan, refi or HELOC?


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Here's the situation:

A duplex two - 2 bedroom units. Owned flat out. Bought it for 30k, put about 10k in it. Very nice rentable units. 750 and 650 pr month.

I have good credit 720 -750. I pretty much tapped out my finances by my standards, meaning I like to have a certain amount on hand.

I know this property could get appraised for a good amount based on the comps in the neighborhood. Properties for sale at 130k and 120k.

Went to one bank and the terms on their HELOC were shaky. Also I had bad experiences with HELOC's in the past.

So what would you do? How would you cash out? home equity loan, Refi, or HELOC?

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I own a couple rentals myself...

I personally have LOCs on them - I don't tap them, but they are there in case I need them. This way, I have a cushion, but I'm not paying interest on the money until I pull it out.

I'd call 1 or 2 local banks to see what they have.

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I am going to get the first bank to pull my credit, make an offer then I will shop around to see if other banks can beat them.

I think I am going to go with a home equity loan and be aggressive with paying it off. Look at this scenario 70k at 4.1% interest

Loan Line of credit

Monthly payment

$616 $239

Ending monthly payment

$616 $239

Total interest

$18,694 $34,356

Amount owed after 144 months

$0 $70,000

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