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NJRay
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| Joined: | Tue Oct 31st, 2006 |
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| Posts: | 2 |
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Posted: Tue Nov 7th, 2006 12:24 am |
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Vicky,
Thank you for the input. Sounds like loan on primary is the way to go, for better rate,
but looking to get that warm and fuzzy feeling of primary paid off and loans only through
my LLC.
Ray
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vic
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| Joined: | Sun Mar 26th, 2006 |
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| Posts: | 417 |
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Posted: Sat Nov 4th, 2006 02:59 pm |
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We were in a similar situation and decided to take the equity out of our primary home.
You will get much better rates and terms on your primary residence than on your investment properties. What decisions you make should also be related to your tax status. Are you subject to the passive activity loss (PAL) limits? Do you generate taxable income from your rentals? Etc..
We were looking at cashing out one of our investments that is a free and clear property. Even though our credit is perfect and our debt/income ratio is great, we did not get good rates and on top of that had to pay high closing costs. Cashing out the investment property would have given us interest rates of more than 8% and $4000 in closing costs. Refinancing our primary residence resulted in 6.25% and $500 in closing costs.
Vicky
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NJRay
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| Joined: | Tue Oct 31st, 2006 |
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Posted: Wed Nov 1st, 2006 12:23 am |
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Looking for some financing options. Have great credit, equity in primary residence and roughly 400k equity in rentals.
Looking for a new purchase, should I:
Refinace small 35k first ( 7.75%), with 25 years left and pull equity?
Get a HELOC? ( so i can pay cash )
get a second mortgage on the 35k property, then go for a new first?
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