Immediately after accepted, you aren’t required to utilize the credit line otherwise need it
What’s more, that have a HELOC you only tap into your own guarantee and use the money when the whenever you want them.
By contrast, for many who pursue property guarantee financing, cash-away refinance, otherwise personal loan, you have made your money inside the a lump sum at the closing and you can have to begin repaying those people borrowed fund soon afterwards.
Investment property HELOC downsides
Into the drawback, taking a beneficial HELOC to your a residential property is generally costly than borrowing from the bank against much of your house. Interest rates tend to be highest having financial support and you can leasing functions across the board.