Rough numbers, I have $180,000 left on my mortgage and line of credit. My house is worth twice that amount at $375,000.
I wanted to see if I would be able to take $20,000 out from my equity on my house, either as a refinance, line of credit or 2nd mortgage.
Although most banks I've talked to have said with all that's going on with Covid, they're currently aren't supporting any new contracts that allow someone to take out equity. They are willing to refinance and re-do my mortgage but no cash out.
Plus I'm more interested in a program that would allow me to get $20,000 from my existing Equity. Would anyone have any recommendation on what programs or banks that would allow that is this current climate?
Check with another company and make sure to go with a fixed rate product.
This is my .02 and I am by no means an mortgage expert, good luck.
Check with another company and make sure to go with a fixed rate product.
This is my .02 and I am by no means an mortgage expert, good luck.
If you can pay back the cash in 1-2 years I don’t see the risks of rates rising too much over that time frame. Moderate but unless the economy does they’ll be careful in how fast they raise rates.
You only pay interest on what you borrow and you don’t have to start paying back principal for a set number of years, in some cases 5-10. If you think you can repay the loan before that 1-2 year window where rates move significantly higher then it makes sense. Sorry for the long-winded response but there are a lot of variables.