dcterp90
Post 10/11/2024 12:49     Subject: Take HELOC and then move within a year or two?
Your LTV doesn't actually make any difference, because that only matters on a first mortgage origination.
Anonymous
Post 10/08/2024 11:25     Subject: Take HELOC and then move within a year or two?
Anonymous wrote:Seems completely reasonable.

The whole idea of a HELOC is flexibility. Doesn’t hurt to get it and have it available for when you decide to either do a reno or move.


Any issue if the combined LTV ratio in house #1 us closer to 90% than 80%?
Anonymous
Post 10/08/2024 11:02     Subject: Take HELOC and then move within a year or two?
Mortgage rates for home two will be higher than for a first mortgage.
Anonymous
Post 10/07/2024 21:19     Subject: Take HELOC and then move within a year or two?
Would the bank providing the HELOC take issue if house #1 is no longer primary residence within the first year? Does it matter?
Anonymous
Post 10/07/2024 18:48     Subject: Take HELOC and then move within a year or two?
Anonymous wrote:Wouldn't the lender for house #2 object to this plan? (They would know the origin of the downpayment)


If OP draws the downpayment from the HELOC and places it in a money market account before shipping for a mortgage for house #2, the new lender would just see a current house with a mortgage and a HELOC and money for downpayment in the money market account. Why would the new lender complain, assuming OP qualifies for a new mortgage (and can repay the two claims in house #1, in part with rental income)?
Anonymous
Post 10/07/2024 18:41     Subject: Take HELOC and then move within a year or two?
Wouldn't the lender for house #2 object to this plan? (They would know the origin of the downpayment)
Anonymous
Post 10/07/2024 18:31     Subject: Take HELOC and then move within a year or two?
Seems completely reasonable.

The whole idea of a HELOC is flexibility. Doesn’t hurt to get it and have it available for when you decide to either do a reno or move.
Anonymous
Post 10/07/2024 18:02     Subject: Take HELOC and then move within a year or two?
If you don’t use the helix on improvements to the primary residence you cannot legally deduct the interest on your taxes.

The interest on heloc is quite high right now, I would not spend money I don’t have at an 8% interest rate.
Anonymous
Post 10/07/2024 17:42     Subject: Take HELOC and then move within a year or two?
Thanks. For various reasons, I don't want to liquidate other assets to pay for improvements or for funding the future downpayment if I decide to move out.
Anonymous
Post 10/07/2024 17:24     Subject: Take HELOC and then move within a year or two?
Why would you pay interest when you don't need to?
Anonymous
Post 10/07/2024 17:19     Subject: Take HELOC and then move within a year or two?
I am planning to get a HELOC for improvements in my current home. My plans are a bit uncertain, however, and there is a possibility that I might forgo the improvements and decide to just move out within the year or two-- and rent out my current place -- in which case I would use the HELOC to help come up with the downpayment for the next home. My job is secure, and I am not concerned about not being able to pay the HELOC. Is there any issue I need to keep in mind, particularly if I get the HELOC and move out, say within a year?