Any financial advisers here? I have a couple questions

[cnelk]

I have a couple questions for a financial advisor if anyone would like to PM me.

Topics are - recast a mortgage, home equity, and possible investment opportunities

Thanks

 

[wapitibob]

pay it off, get a no cost heloc that you never use, go hunt

you're welcome

 

[Beendare]

A second on your home for a investment still has to be categorized as a business loan, be wary of anyone telling you otherwise.

.

 

[DmrbigEshotT]

As an advisor who used to previously work in the mortgage industry, I would be surprised if many registered investment advisors know what a recast is.

Those also are 3 topics that require a lot of background info to provide a response worth any weight.

My advice would be to heed caution to any recommendations on this forum (finance related) unless it’s from a fiduciary who is your personal trusted advisor.


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[ben h]

The problem I see with recasting is all your cash is then used up in equity which is valuable, but it's not cash without another loan or selling. Recasting will just lower your monthly payment. I did what wapitibob, suggested and went the HELOC route. You'll pay a little higher % rate, with the HELOC, but there aren't any closing costs (mine was $0 out of pocket, including title work, appraisals, or underwriting), and you only pay on what you draw, not the entire loan, like you would with a traditional loan. The problem with my HELOC is it's variable rate which has been set at 3.5% since I got the loan in 2018. I don't foresee it rising in the near term and if it does I have the cash to pay it off anyway, but if that were to happen I loose the ability to draw on the equity. I believe at the time of closing I could have locked in my rate at slightly higher rate, but I elected to take the gamble.

If you do elect to put all your cash into equity on properties and you ever need to exchange for cash, you'll have plenty of lenders who would love to charge you points, closing costs, title work, appraisals, etc. to do a traditional refi or realtors to sell your property.

 

[dirtytough]

Bogleheads.org is your friend when it comes to this stuff.

 

[roadrunner]

Set up an appointment with an FA. No FA worth their salt is going to give you advice you can't find on your own through internet searches...

Edit: no FA will give you advice on a public forum.

 

[kevlar88]

As a financial advisor in one on my previous lives, my advise would be to go see a financial advisor.

 

[cnelk]

Thanks for the replies.
Ive been in contact with a FA that responded to this thread and has been most helpful

 

[cnelk]

And in return he gets intel for deer/elk and pronghorn