There are homeowners these days who are either investors or wishes to start investing. However, some lack the fund to invest. The good news is since they have enough accumulated home equity, many are considering a home loan option to fund and make their investment dream a reality. But is it worth the risk?
Home Equity Loan Options
For homeowners who want to pull equity out of their homes, they can either apply for a Home Equity Line Of Credit or a Cash Out Refinance Loan. Whichever loan type you apply for, you can get a hot deal and receive a hefty amount of cash. But let’s focus on Cash Out Refinance Loan.
Pros of Using a Texas Cash Out to Refinance an Investment Property
In Texas, there are definitive advantages as well as drawbacks when using your equity to finance an investment property purchase.
- You get to lock in a loan with very low-interest rates since most lenders only have about 4% interest rate.
- The LTV or Loan-To-Value amount you can get out of a Texas Cash Out will depend on your lender, but some offers up to 75% LTV. This only means if you get an LTV of