How to use your equity in your Indianapolis Home to buyer another home
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Thinking of buying another home for investment purposes but do not want to refinance to a higher rate? Have lots of equity? Consider talking to your local credit union about rate and terms for a home equity loan for this endeavor. Home equity loans are being use for multiple reasons, such as buying a new primary residence, paying off debt, home repairs and as mentioned above, buying investment properties. Make sure you are not stretching your budget in order to do any of these options, thereby putting your current primary residence at risk.
Pros and Cons of this are things to always be considered. Some of the pros are, it doesn't force you into utilizing your savings, easy access to equity and most of the time refinancing your 1st mortgage isn't necessary. Some cons of this as an option are decreasing your home equity, all payments including the new home equity line will count against you on DTI (debt to income ratio) for any future purchases and it does add a new level of risk with additional debt.
Do not utilize a Zestimate when thinking of what you can borrow as you could end up very disappointed. Appraisals are more subjective than most realize and you will have to rely upon the bank you choose and that appraisal.
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