Success Stories

How a Canadian Investor Paid Off Her HELOC with Milo

By Colin McMahon

July 3, 2024 4 min read

How a Canadian Investor Paid Off Her HELOC with Milo

In the dynamic landscape of Miami's real estate market, navigating the complexities of securing a mortgage can be daunting, especially for foreign nationals. This was the scenario faced by a Canadian client who, after living in the U.S. for several years and purchasing a home all-cash, was transferred to Italy for work. Renting out their Miami property seemed like the perfect solution, but rising rates on her adjustable Home Equity Line of Credit (HELOC) soon presented a challenge.

A HELOC is a loan that allows homeowners to borrow against the equity in their home, often used for large expenses or debt consolidation. While HELOCs offer flexibility and lower initial rates, they typically come with adjustable rates that can rise significantly, as our client experienced.

When she reached out to us at Milo, she was dealing with an adjustable-rate HELOC that had become financially untenable. Being out of the country disqualified her from many U.S. mortgage options, but she was determined to find a solution that would stabilize her financial situation and allow her to take advantage of her property’s rental income.

The property in question was a single-family home valued at $1,400,000 in the vibrant city of Miami. The primary goal was to refinance the existing HELOC, which was adjusting to much higher rates, and reduce the monthly mortgage payments. Additionally, she wanted to leverage the increased cash flow from renting the property to reinvest in another real estate opportunity.

Our approach at Milo was to offer a cash-flow loan, an ideal product for her situation. This type of loan focuses on the income generated by the property rather than the borrower’s personal income, making it a suitable option for investors with properties that produce sufficient rental income.

We proposed a 25% Loan-to-Value (LTV) cash-flow refinance loan, which not only provided a more favorable rate but also helped her manage her finances more effectively. This move was strategic, offering her immediate financial relief by paying off the high-rate HELOC and adjusting the loan terms.

Thanks to the new loan terms, the result was a significant reduction in her monthly payments. Additionally, the extra cash extracted from the refinance was reinvested into another property, enhancing her overall investment portfolio.

For our Canadian client, this wasn't just about securing a loan; it was about finding a financial strategy that worked in her favor, even from across the globe. At Milo, we pride ourselves on understanding the unique needs of our clients, no matter where they are in the world.

Choose Milo for your mortgage needs; We understand the nuances of international investment and are committed to making the process as smooth as possible. For more information, create an account here.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

Author

Loan Consultant Sales Team Lead

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