Question about home equity loan?
Saturday, 15. May 2010
I have paid off my house 100%. Now I am thinking may be want to invest on rental property say condo. If I put down ,000 using my home equity to buy another real estate, what is this mean? I would be paying mortgage based on my down payment correct? What if something happens and became unable to pay it off, what would happen?
Kathy B Says:
If you borrow $20,000 using your home’s equity you have created a new mortgage on your home. If anything happens that you can’t make the payments on this loan they could foreclose on the house, even though you only owe $20,000. Make sure you have the ability to repay this loan no matter what happens.
maya_team Says:
If i understand your question correctly you want to pull $20,000 out of the equity in your current home via a Home Equity Loan.
This is a mortgage loan that would be amortized over a period of years and you have to make monthly payments.
If you miss your payments you may lose your house in foreclosure.
Just be careful, do your numbers right.