How does a home equity loan work ( interest, charges, process)
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Anonymous
| I would like to take out equity in my first home to help pay for a new investment home. That home is rented and valued at $160k( out of state) . I owe 90k, bought 5 years ago. Is it even possible to use this money for a downpayment? |
Anonymous
| Technically if it is not owner occupied you might have a harder time and pay a higher rate. |
Anonymous
| Pretty sure you can't use a home equity loan for this. They want to hear that you're improving the house that you take the loan from, not buying another property. If you really want to do this, you'd need to do a cash-out refinance. |
Anonymous
|
In general, you can do it. Just tell them you want the loan and aren't sure what you will do with it yet - may do some improvements or something else. Once it's approved, you can do what you want with it.
We had a house worth $550K (owed $100K on it) and took out a $250K interest only home equity loan and then bought another house with it. We did it so we didn't have to sell our house before buying another. Then we turned around and sold the first home. Having said that, I don't know how much they will lend you with $70K equity, if that is how much you have. |