Hi everyone,
I’m weighing two strategies for purchasing a second home and would love input. Here’s my situation:
- My current home has a **2.6% interest rate** and is in an excellent high end rental market(schools, tourism, jobs, etc...) I’d prefer to keep it as a rental property rather than sell.
- I have 300K in equity in my current home and could potentially tap into it via a HELOC or home equity loan.
- Alternatively, I could leverage some of my stock market investments for the down payment on the second home.
I’m trying to determine the best approach to maximize my situation while managing risks. Should I:
1. Sell my current home, use the equity for the new property, and avoid juggling two mortgages?
2. Keep my current home as a rental (given the low interest rate) and use **home equity** or **stock market funds** or both for the down payment on the second Loan.
I’m cautious about overextending myself with multiple loans or pulling too much from my stock investments. What strategies have worked for you in similar situations? I’m really interested in understanding the using stocks for home down payments.
I realize yall don’t have my full financial situation.
Mortgage on current home is $2700/month
Rental assumption is $3500/month
80K liquid cash in bank
200K in stocks
300K in equity
Could use any combo of.
Thanks in advance for your insights!