Profile picture for ryan81

creative financing suggestions?

hello experts, 

hoping to get some guidance from you guys. 

i have just got in a contract, and looking to get a loan of 615k for a 30 yr mortgage.  now i have couple of options - 

Opt1- get the 615k on a 30 yr fixed
Opt2- i can pick 550k on a 30 yr fixed and the rest 65 k on a HELOC (Home Equity Line of Credit) for 2 yrs at a 1.99% and pay it early. In this case I am not paying a high rate of interest on as high amount. 

now where can i do such a comparison or play around with the numbers and see what works out? also what other suggestions you guys might have

tks



  • April 13 2013 - San Francisco
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (2)

Profile picture for CA Direct Lending
I'd like to know a little more before making any recommendations. 

1.  Is this your primary residence?
2.  How long do you plan to keep this home?
3.  If it's a primary and you don't plan to live in it for the next 30 years, could it be a viable, long-term rental after you move?
4.  How much down payment are you putting?
5.  If you chose a lower-cost/payment option, would you be inclined to conserve or consume the savings?

Thank you!

Ray
  • April 14 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Hi Ryan,

Depending which State you are located in, your conforming loan limits can vary.  Although, most lenders are not favoring HELOC's.  In fact, the majority of HELOC's are currently frozen, and owners are not allowed to borrow against them.  Hence, I'd recommend you get a the loan on option 1.  I'd based that because you have the entire amount locked on one fixed rate.  Also, you never know if you have any family "emergencies" that occur, which changes your payment plan in paying off the HELOC early.  The best thing you can do is add up your payments, and see if the savings between options is much different than if you just did Option 1.  Personally, I'd stay away from HELOC's, as the security of a 30yr fixed, at these low rates, is very hard to pass up.

Feel free to ask any further questions.  Good Luck!
  • April 14 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.