How to convert HELOC to fixed rate mortgage and earnings not rates cost when house is sold?
Hi,
To buy new house I took HELOC against my old house which I planned to deal in shortly to pay off HELOC. I could not put on the market my old house so I am using it as rental property now. I want to convert HELOC into fixed rate lower mortgage. If I convert HELOC into fixed rate mortgage, when I sell my rental property will the money from sale be transferred to my primary mortgage company short lump sum distribution to avoid tax penalty?
Thank you
Answers:
You might be capable of convert the heloc, but two items, one the rate on home equity loans are usually high, and two, home equities are tougher to come by, especially on a rental property. you could look into locking the rate like mary suggested, it depends on the lender and when you took out the heloc as the lock within feature has just been around for a few years. If you sell the rental, any proceeds will be given to you, other arrangements I would consult the irs or a cpa. you may want to look at dune of america for the home equity, I was just conversation to a broker contact of mine and she claims they are doing home equities still, best of luck Source(s): 7 years mortgage experience
Depending on what state you live in, there may be some nuance in the law. Home Equity Lines of Credit (HELOCs) recurrently have available something called a Fixed-rate Option. You thieve a portion of your revolving limit, usually that which you have taken an mortgage on, and "fix-it" or create a closed-ended loan payable at a fixed interest rate, for a set period of time at a fixed payment.
As far as a toll penalty, depending upon what is paid to you after adjectives other liens on your "old" house is sold, you may not have to worry roughly that. You've already purchased another home, and as long as the amount that you got out of your old home is matching or less than what you paid for your hot home, you are set. There are other issues involved, such as length of time you owned the home, your income level, etc.
IRS.gov has some publications that can be pulled up online that can clarify this for you. Source(s): irs.gov
Related Questions:
Subprime mortgage rate freeze plan: what generous of rates are we discussion give or take a few?
From articles like this: http://news.yahoo.com/s/nm/20071202/bs_n… I've been reading around plans involving lenders freezing rates for subprime mortgages at their "teaser" levels for up to seven years. What nobody is mentioning is what...
To buy new house I took HELOC against my old house which I planned to deal in shortly to pay off HELOC. I could not put on the market my old house so I am using it as rental property now. I want to convert HELOC into fixed rate lower mortgage. If I convert HELOC into fixed rate mortgage, when I sell my rental property will the money from sale be transferred to my primary mortgage company short lump sum distribution to avoid tax penalty?
Thank you
Answers:
You might be capable of convert the heloc, but two items, one the rate on home equity loans are usually high, and two, home equities are tougher to come by, especially on a rental property. you could look into locking the rate like mary suggested, it depends on the lender and when you took out the heloc as the lock within feature has just been around for a few years. If you sell the rental, any proceeds will be given to you, other arrangements I would consult the irs or a cpa. you may want to look at dune of america for the home equity, I was just conversation to a broker contact of mine and she claims they are doing home equities still, best of luck Source(s): 7 years mortgage experience
Depending on what state you live in, there may be some nuance in the law. Home Equity Lines of Credit (HELOCs) recurrently have available something called a Fixed-rate Option. You thieve a portion of your revolving limit, usually that which you have taken an mortgage on, and "fix-it" or create a closed-ended loan payable at a fixed interest rate, for a set period of time at a fixed payment.
As far as a toll penalty, depending upon what is paid to you after adjectives other liens on your "old" house is sold, you may not have to worry roughly that. You've already purchased another home, and as long as the amount that you got out of your old home is matching or less than what you paid for your hot home, you are set. There are other issues involved, such as length of time you owned the home, your income level, etc.
IRS.gov has some publications that can be pulled up online that can clarify this for you. Source(s): irs.gov
Related Questions:
Subprime mortgage rate freeze plan: what generous of rates are we discussion give or take a few?
From articles like this: http://news.yahoo.com/s/nm/20071202/bs_n… I've been reading around plans involving lenders freezing rates for subprime mortgages at their "teaser" levels for up to seven years. What nobody is mentioning is what...