Hello all,
Looking at purchasing a property (primary residence in no income tax state) and considering two methods for purchase.
I will need about half the purchase price for another investment that will require funds for 1-2 years.
1.) cash and then take a home equity loan at 4.5% for 5 years
2.) traditional mortgage for 15 years at 6.375%/30 years 6.625% and either pay off early or refi when rates drop
On paper option 1 is the clear winner but am I missing anything such as tax deductible interest?
Any other ideas?