Refinance or Home Equity Loan?
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My brother and I are in our mid to late 20’s and own a 2 unit home valued at approximately $ 75,000 free and clear. We have a 30 year mortgage (out on another home valued at approximately $ 40,000) at a fixed rate of 7.4395%. We have been paying on this loan for almost 3 years. (PMI of $ 20 a month). Each of these are rental units.
I know mortgage rates are at an all-time low slightly under 5%. Would it be better for us to refinance our current mortgage or take out a home equity loan and use it to pay it off.
Please factor into the equation that I plan on purchasing another property in the next year or so which will be my primary residence.
rates are low but the big deal hear is the fact that it is investment property. The rates on investment homes are higher and the fact that you are going to buy again may actually hurt you in the long run.