My real estate broker is advising me to borrow money against my current house for the down payment on a second house . I need to borrow about 50k. My current house has a principal balance of 80k and interest rate is 2.5%
If I take 50k out, total balance becomes 130k. So will I be paying 2.5% on 130k, or will this 50k be considered HELOC which has 5% interest rate?
The numbers above are not real, for example purposes only.