realestate

So here’s a scenario for you. You have equity in your home, but you don’t want to refinance your first mortgage, but you want to get cash out of your home. How do you do it? Most people do it through what’s called a HELOC or second mortgage. What if this is if you take a loan against your house, it has a lower interest rate, but the bad part is now there’s a lean against your house for this money. So a HELOC allows you a line of credit. It’s called the home equity line of credit, almost like a credit card tied to your house with the lower interest rate than a credit card. A second, a regular second mortgage, is taking out a lump sum of money that you make monthly payments that you can’t re-borrow again. So what do you think? Are those good options for people to do? The bad part again, is you have a lien on your house and you’re going to be able to do great things like get into a car, redo your home, but you’re borrowing against your house. Do you think it’s a good idea? What about using a second mortgage to invest in other properties? Some people think it’s good. Some people don’t. What do you think?