Mortgage vs Home Equity

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Topic Author
mini1
Posts: 23
Joined: Sun Aug 28, 2022 4:01 pm

Mortgage vs Home Equity

Post by mini1 »

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?
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