DTI
Drilling Tools International Corporation Common Stock
stock NASDAQ

Here’s your answer: it depends, but I’ll tell you what I would do if it won’t affect X factors. See below.
Basic info in case you don’t know how the mortgage side works, the heloc inquiry might drop your score a few points but probably not more than about 3 to 5 points. Mortgage rates are based on a matrix with multiple boxes that determine your LLPAs (Loan Level Price Adjustments) that get added to your base rate as well as the base rate itself. The boxes you will be concerned about are: LTV (loan to value), FICO score, and DTI (debt to income). Ltv has price adjustments every 5%, Fico every 20 points, DTI is program specific and isn’t always a factor - sometimes it’s just qualify/not qualified.
Example, let’s say you are currently at 76% ltv, with a 723 fico, and a 49% DTI. In this scenario, you would actually want to put a little bit more down because the 75% ltv break point would benefit you. Your credit report is good for 120 days, so the pull won’t affect your score unless they had to repull your OG score because it expires while you wait for your heloc to fund (fast ones about 8 days, slow ones about 35). Don’t be rate sensitive on the heloc - it’s short term money. DO be cost sensitive since it’s short term. So you’re looking for near zero cost and don’t worry about the rate even if it’s 1 to 2% higher. Also, make sure there is no early close penalty if you are planning to pay it off in the next X days. Lastly, on this point, if you are working with a broker, tell them your plan. They have something called an EPO where THEY have to pay for the costs on your loan if you pay it off too quickly. If it’s a bank loan officer, don’t worry. That cost is built in or they’ll cover it with an early fee to you. Lastly, the underwriter on your new 1st mortgage will want to add any monthly payment required from the margin loan. Make sure that added payment doesn’t push your DTI up over a the max DTI allowed for your loan from both the Heloc loan or the margin loan. Based on all of these factors, you should be able to figure out which trigger to pull. At least, it will if I explained myself clearly.
Personally, I would do the margin loan for the simplicity, and your only risk is if the market massively tanks before your home sells.
Hope this helps.

Here’s your answer: it depends, but I’ll tell you what I would do if it won’t affect X factors. See below.
Basic info in case you don’t know how the mortgage side works, the heloc inquiry might drop your score a few points but probably not more than about 3 to 5 points. Mortgage rates are based on a matrix with multiple boxes that determine your LLPAs (Loan Level Price Adjustments) that get added to your base rate as well as the base rate itself. The boxes you will be concerned about are: LTV (loan to value), FICO score, and DTI (debt to income). Ltv has price adjustments every 5%, Fico every 20 points, DTI is program specific and isn’t always a factor - sometimes it’s just qualify/not qualified.
Example, let’s say you are currently at 76% ltv, with a 723 fico, and a 49% DTI. In this scenario, you would actually want to put a little bit more down because the 75% ltv break point would benefit you. Your credit report is good for 120 days, so the pull won’t affect your score unless they had to repull your OG score because it expires while you wait for your heloc to fund (fast ones about 8 days, slow ones about 35). Don’t be rate sensitive on the heloc - it’s short term money. DO be cost sensitive since it’s short term. So you’re looking for near zero cost and don’t worry about the rate even if it’s 1 to 2% higher. Also, make sure there is no early close penalty if you are planning to pay it off in the next X days. Lastly, on this point, if you are working with a broker, tell them your plan. They have something called an EPO where THEY have to pay for the costs on your loan if you pay it off too quickly. If it’s a bank loan officer, don’t worry. That cost is built in or they’ll cover it with an early fee to you. Lastly, the underwriter on your new 1st mortgage will want to add any monthly payment required from the margin loan. Make sure that added payment doesn’t push your DTI up over a the max DTI allowed for your loan from both the Heloc loan or the margin loan. Based on all of these factors, you should be able to figure out which trigger to pull. At least, it will if I explained myself clearly.
Personally, I would do the margin loan for the simplicity, and your only risk is if the market massively tanks before your home sells.
Hope this helps.