These a bad idea? They sure do seem like it to me, but I wonder about using a 125% HE loan to pay a down payment on another house....

What do you think?

 

I think that you might be streching yourself a bit thin. Leveraging yourself to the hilt can put yourself in a risky position. If you get injured or sick and can't work for a while you will lose everything.

No risk no gain but make sure you are prepared for contingencies. Good luck.

 

Interest rates usually really suck on these loans (worse than any of my credit cards - but I didn't look that hard), and the interest on the extra 25% is not tax deductible like the rest of your mortgage interest.

 

yeah the interest rate I was looking at is 11.84 or something to that effect, which is worse than my CCs too.

I think I will just forget about it for now...

 

Speaking of which... i really need to refinance my apartment

 

home equity loans are typically cheaper than mortgages. they should be offered at prime, which is the 5 year treasury...close to 4%?

c3 makes a good point about over-extending yourself. also, if you're looking at taking the loan out for investment purposes, you're looking at a higher interest rate for NOO (non owner occupied) purchases. also, you'll have 3 mortgages then!

to the poster above...if you're looking to refi, today was the best day of rates this year!

 

thanks for your input Dan and others. I think I will wait till I have more cash