HELOC with Prime minus 0.76%

[noone]

While the mortgage is nonrecourse debt, it is my understanding that the HELOC is not. In other words, if you default on your mortgage, the only thing the bank can legally take is the house. Default on the HELOC and you’re still responsible for the full outstanding amount.

Just something to think about.

[IONEGARM]

While HELOCs are recourse, to get recourse the lender has to pursue a judicial foreclosure. Not something likely to happen in California. Once the trustee sale happen it wipes out everything. So unless the HELOC buys out the first and judicial forecloses on the house.. they have no recourse. From a practical point of view, high LTV HELOCs in a declining market in California are non-recourse.

[IONEGARM]

While HELOCs are recourse, to get recourse the lender has to pursue a judicial foreclosure. Not something likely to happen in California. Once the trustee sale happen it wipes out everything. So unless the HELOC buys out the first and judicial forecloses on the house.. they have no recourse. From a practical point of view, high LTV HELOCs in a declining market in California are non-recourse.

[IONEGARM]

While HELOCs are recourse, to get recourse the lender has to pursue a judicial foreclosure. Not something likely to happen in California. Once the trustee sale happen it wipes out everything. So unless the HELOC buys out the first and judicial forecloses on the house.. they have no recourse. From a practical point of view, high LTV HELOCs in a declining market in California are non-recourse.

[IONEGARM]

While HELOCs are recourse, to get recourse the lender has to pursue a judicial foreclosure. Not something likely to happen in California. Once the trustee sale happen it wipes out everything. So unless the HELOC buys out the first and judicial forecloses on the house.. they have no recourse. From a practical point of view, high LTV HELOCs in a declining market in California are non-recourse.

[IONEGARM]

While HELOCs are recourse, to get recourse the lender has to pursue a judicial foreclosure. Not something likely to happen in California. Once the trustee sale happen it wipes out everything. So unless the HELOC buys out the first and judicial forecloses on the house.. they have no recourse. From a practical point of view, high LTV HELOCs in a declining market in California are non-recourse.

[HLS]

CV2.. I’m in the mortgage biz, so can give you all kinds of ideas about financing options, but I’ll hedge on the tax advice.

You can talk to your CPA, but if you can paper trail the funds and what they are being used for, you may still be able to take the direct deduction, otherwise you may still be able to deduct the HELOC interest with the same net result.

I’m not sure how many people have rentals with 30 YR fixed loans below 6%, but very few.

Without knowing how much equity you have,don’t fret over others with lower rates. If I knew more about your situation, I might be able to suggest some other creative ways to increase your cash flow, but having equity and a 7% loan is better than being upside down with a 6% loan!

[HLS]

CV2.. I’m in the mortgage biz, so can give you all kinds of ideas about financing options, but I’ll hedge on the tax advice.

You can talk to your CPA, but if you can paper trail the funds and what they are being used for, you may still be able to take the direct deduction, otherwise you may still be able to deduct the HELOC interest with the same net result.

I’m not sure how many people have rentals with 30 YR fixed loans below 6%, but very few.

Without knowing how much equity you have,don’t fret over others with lower rates. If I knew more about your situation, I might be able to suggest some other creative ways to increase your cash flow, but having equity and a 7% loan is better than being upside down with a 6% loan!

[HLS]

CV2.. I’m in the mortgage biz, so can give you all kinds of ideas about financing options, but I’ll hedge on the tax advice.

You can talk to your CPA, but if you can paper trail the funds and what they are being used for, you may still be able to take the direct deduction, otherwise you may still be able to deduct the HELOC interest with the same net result.

I’m not sure how many people have rentals with 30 YR fixed loans below 6%, but very few.

Without knowing how much equity you have,don’t fret over others with lower rates. If I knew more about your situation, I might be able to suggest some other creative ways to increase your cash flow, but having equity and a 7% loan is better than being upside down with a 6% loan!

[HLS]

CV2.. I’m in the mortgage biz, so can give you all kinds of ideas about financing options, but I’ll hedge on the tax advice.

You can talk to your CPA, but if you can paper trail the funds and what they are being used for, you may still be able to take the direct deduction, otherwise you may still be able to deduct the HELOC interest with the same net result.

I’m not sure how many people have rentals with 30 YR fixed loans below 6%, but very few.

Without knowing how much equity you have,don’t fret over others with lower rates. If I knew more about your situation, I might be able to suggest some other creative ways to increase your cash flow, but having equity and a 7% loan is better than being upside down with a 6% loan!

[HLS]

CV2.. I’m in the mortgage biz, so can give you all kinds of ideas about financing options, but I’ll hedge on the tax advice.

You can talk to your CPA, but if you can paper trail the funds and what they are being used for, you may still be able to take the direct deduction, otherwise you may still be able to deduct the HELOC interest with the same net result.

I’m not sure how many people have rentals with 30 YR fixed loans below 6%, but very few.

Without knowing how much equity you have,don’t fret over others with lower rates. If I knew more about your situation, I might be able to suggest some other creative ways to increase your cash flow, but having equity and a 7% loan is better than being upside down with a 6% loan!

[LarryTheRenter]

HLS…Do you or do you know of anyone offering a refi of a rental property to an interest only loan in the 6% range without any points.??.I am still good in the loan to value issue (~60% or so), but have a 5yr ARM coming up in 6 months and just want to decrease my monthly payment and pay the principle down when I like….I know I would be paying slightly higher interest, although the overall payment would go down..

Any ideas would be appreciated…

thanks

[LarryTheRenter]

HLS…Do you or do you know of anyone offering a refi of a rental property to an interest only loan in the 6% range without any points.??.I am still good in the loan to value issue (~60% or so), but have a 5yr ARM coming up in 6 months and just want to decrease my monthly payment and pay the principle down when I like….I know I would be paying slightly higher interest, although the overall payment would go down..

Any ideas would be appreciated…

thanks

[LarryTheRenter]

HLS…Do you or do you know of anyone offering a refi of a rental property to an interest only loan in the 6% range without any points.??.I am still good in the loan to value issue (~60% or so), but have a 5yr ARM coming up in 6 months and just want to decrease my monthly payment and pay the principle down when I like….I know I would be paying slightly higher interest, although the overall payment would go down..

Any ideas would be appreciated…

thanks

[LarryTheRenter]

HLS…Do you or do you know of anyone offering a refi of a rental property to an interest only loan in the 6% range without any points.??.I am still good in the loan to value issue (~60% or so), but have a 5yr ARM coming up in 6 months and just want to decrease my monthly payment and pay the principle down when I like….I know I would be paying slightly higher interest, although the overall payment would go down..

Any ideas would be appreciated…

thanks

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