heloc or home equity loan for home repairs. Which best avenue?
I own one of my homes . Value approximately $160K no liens. I have a mortgage on a recent home purchase. Mortgage $3.5K per month. I need to borrow $60K for repairs on both homes. The new home loan rate is 5.95%, my FICO score is 678. What is my best avenue to acquire the $60K for my home repair needs? The property that is paid in full is in Illinois. The property with a mortgage is in Florida. Thank you.
Terry Says
Well, if you had asked BEFORE you purchased the second home, I’d have told you not to do it — especially since you need so much money for repairs.
So, now you must ask: Which property do I LEASE want to jeopardize, just in case I can’t repay the loan because the economy turns south.
And then, look carefully at the terms of the loan you take out. Some Home Equity loans or HELOC drawdowns set repayment terms that are interest-only. Then at the end of 5 years, you suddenly owe the principal.
Maybe consider delaying the repairs if your job is iffy, or you could be impacted by higher costs any minute because of tariffs?
