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Jeff Strickland wrote:
> > RESPONSE: I suggest that consider taking a HELOC instead of a 1/1 or
> > 3/1 in your instance because, 1) You can access the money for free
> > (HELOCs are no cost/low cost borrowing instruments; a 1/1 or 3/1 would
> > cost several thousands of dollars to access the money in your existing
> > home); 2) You can borrow just what you need for the downpayment with a
> > HELOC; some lenders impose a min. loan amount that might require that
> > you borrow more then you require with the 1/1 and 3/1; 3) You are only
> > borrowing the money on the short term (HELOCs are not recommended for
> > long term lending for a number of reasons that aren't important to you
> > because you are borrowing short term). You will be in a stronger
> > qualification position with only a 10-20K HELOC balance on the books as
> > opposed to a 30-40K 1/1 or 3/1 ARM.
> >
>
> These are all good points. My only counter is that a HELOC might turn out to
> be more costly IF the term gets stretched to the 3 year time frame. I
> have not run the numbers, and only suggested the 3/1 and 1/1 as viable
> alternatives to consider.
Jeff, I do not disagree with you on this point, that's why my original
point contained this caveat; HELOCs are not recommended for long term
lending......
Regards,
Scott Miller
National Commercial and Residential Lender/Broker
1.877.716.6495
EZMortgageLoanz@aol.com
www.RealEstate-IQ.com
www.EZMortgageLoanz.com
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Re: Ping or Calling Jeff Strickland Please Help
