Home Investment line of credit opinions

Homebuyer Forum
1

I am purchasing a rental property for $270k and I wanted opinions on whether I should use money from my line of credit (LOC) that I have open. Here are the details:

  • My personal high yield savings account (4.1% APR): I have more than enough to cover the 25% down payment.
  • Business LOC details: $30k at 3.02% with a payback period of 12 weeks.

Should I use all my LOC money plus some from my personal account to buy this house, or should I not touch the LOC at all?

Any help is appreciated!

2

Is the business line of credit available for personal use, or are you buying the property in the business name? Has the lender asked where the 25% is coming from, or approved using the LOC funds? Regardless, saving $75 seems like a lot of trouble.

3

It seems logical to borrow at 3.02% if you can stay invested at 4.1%. Then pay it back if the HYSA rate drops. But also, why keep so much in a HYSA?

4

It’s 4.1% per year, not monthly, and the LOC has to be paid back in 12 weeks.