03-13-2009, 03:33 PM
I'm currently rolling 2 of my properties and thier accompaning investment LOC's into a single HELOC (Canadian: Home Equity Line of Credit) at 4.1%. The Cash Flow this opens up will pay for my prinicipal mortgage.
I'm not sure if there's an equivilant in the US, I can ask my sister, she's a broker in Calif, if no one here knows.
If you're looking to refinance, maybe take a look at taking out an extra 30-50k and investing it into your home energy system: solar, wind, geothermal, etc.. You could, depending on your region, at least cut your bills down by 80% and possibly make your home put power back on the grid.
Example: If your region is suitable for Geothermal, it can produce 80 your basic heating needs with a $30k dollar system (at least here in BC). You can get another 15v eeasy with 4 pannels (20k), covering the last 20% of your homes needs... assuming you're going to keep your kwh to under 30....
Ofcourse, you could then charge your neighbors a 'hook up fee' to your Geothermal... Permits permitting...
EDIT:
In Canada there are funds & grants available from the government, municipalities (counties: Sonoma County), etc, as well as National Tax Incentives/Rebates for eco-friendly reno's and building/Energy Systems. They help offset costs.
I'm not sure what these programs would fall under in the states, but i'm sure they're there...
One other thing, I made the HELOC interest only. I did this so that I had more control over how the interest and principal repayments were divided: Most loans front end the interest. The money I saved through consolidation can now be put onto the loans principal, which in my case is 1600 (typical 30 yr mortgages, you're putting 4-500 a month).
In addition, its treated as a Line of Credit, not a 30yr House Mortgage (5 yr fixed/adjustables). This means you always have access to your money, whenever you want it.
I'm not sure if there's an equivilant in the US, I can ask my sister, she's a broker in Calif, if no one here knows.
If you're looking to refinance, maybe take a look at taking out an extra 30-50k and investing it into your home energy system: solar, wind, geothermal, etc.. You could, depending on your region, at least cut your bills down by 80% and possibly make your home put power back on the grid.
Example: If your region is suitable for Geothermal, it can produce 80 your basic heating needs with a $30k dollar system (at least here in BC). You can get another 15v eeasy with 4 pannels (20k), covering the last 20% of your homes needs... assuming you're going to keep your kwh to under 30....
Ofcourse, you could then charge your neighbors a 'hook up fee' to your Geothermal... Permits permitting...
EDIT:
In Canada there are funds & grants available from the government, municipalities (counties: Sonoma County), etc, as well as National Tax Incentives/Rebates for eco-friendly reno's and building/Energy Systems. They help offset costs.
I'm not sure what these programs would fall under in the states, but i'm sure they're there...
One other thing, I made the HELOC interest only. I did this so that I had more control over how the interest and principal repayments were divided: Most loans front end the interest. The money I saved through consolidation can now be put onto the loans principal, which in my case is 1600 (typical 30 yr mortgages, you're putting 4-500 a month).
In addition, its treated as a Line of Credit, not a 30yr House Mortgage (5 yr fixed/adjustables). This means you always have access to your money, whenever you want it.