Quote:
Originally Posted by Kolyan2k
I see....
Do I understand it correctly that with HELOC you ONLY pay interest on the money you use and you are not obligated to even use this line of credit at all?
Does it make sense to pay off the mortgage on owner occupied property and then get HELOC instead?
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Yes, you understand that correctly. That could be beneficial, if the interest rate is lower with the HELOC compared to the mortgage (generally unlikely). I'm also not sure you can get a HELOC for more than x% of the property value, which generally would be less than a new mortgage (this part I'm fuzzy on, but I've never seen anyone get a HELOC for more than ~20% of their property value).