Looking to pull some money from my home to buy an adjoining property. Any one on here do HELOC? Do you think that is the best route to purchase the adjoining property?

No, a fixed second, or a cashout will be a better vehicle for a one time expenditure.

So who can tell me more about how to obtain a fixed second?

Just a little info:
property is in texas
need about 40k
currently property is worth about 400k and current loan balance is 235k

Not necessarily, every situation is different.

slop01 my contact information is in my bio, give me a call or shoot me an email with your contact information and good time to call.

Slop, holler at me 214.601.8181

www.JeffDeats.SupremeLending.com

Slop, we can do a 2nd as well, but depending on what you want to do with property it might be better to go the HELOC route.

Braxton.Sherrill@PrimeLending.com
Cell is 979-204-4398

You can get a HELOC with no closing costs. As mentioned depending on what your use and holding period for the other property might be it may be worth looking at.

What are rates for a 2nd compared to a HELOC?

Little disappointed in the lender response so far. Before you pitch for his business at least give a response worthy to another Aggie.

Slop here is your decision tree.

First compare your existing first mortgage to the current market which is about 4.875 on a Texas cash out 30 year fixed. You would refi the first and pull the 40K out in one transaction but would incur arround 4500 in closing costs which again, could be rolled in one loan.

If your sitting on a lower rate and say do not want to scale down rates to a 15 year, above is your base line.

If the above does not pencil then look at a second lien stacked on the first. You can get a HELOC at variable or fixed. Variable is tied to Prime which has gone up I think .75 in the last 2 years and its expected to rise another.75 over the next 12-18 months. Lenders wil offer below prime for a period say one year and bump up. You will see 4.0-4.25 intro offers.

Fixed at 15 years will run 6.0'ish. I'd go with this considering the current market push up in rates.

Find a credit union and avoid big banks. Go local and usually you can get a no closing cost loan. There will be closing costs you don't pay unless you pay off early say 2 years.

If you do have a first lien that we can lower in some way my contact info is in my profile.

Good luck

Oh do tell.......

If you are looking to borrow against your primary home and not urgently looking to close fast a credit union or regional bank are almost always going to be better rate then a secondary market lender. The CU and reginal banks use it as a loss leader to open checking accounts and the cross marketing opportunities. That is all the good, the bad is that 60 day close is not out of the ordinary.

If you are looking to borrow against second home or investment properties those same CU and banks simply do not offer in most cases. or, if you need to close quickly (like to buy another property) then a secondary market product is going to be the best. We close seconds on investment properties in 3 or 4 days often. But, I still refer promary homes with no urgent need to regional banks as the rate will simply be better.

Not sure what happened there but I highly endorse Jay! He's worked numerous loans for me and has always been the best rate.