Can you pay off a home mortgage with a home equity line of credit?
- If her home mortgage rate was higher than her line of credit it makes sense. I do not have a home mortgage but I do have a line of credit on my home. Normally you can just make interest payments on a equity line if you want. My heloc is locked for 5 years with minimum payment being the monthly interest. Normally people do borrow on their home to pay off their home when they refinance
- Technically, you can do that. Pay off your mortgage with your Home Equity Line of Credit HELOC. It doesn't make much sense because the bank who financed the HELOC can still foreclose on the house. Plus you still owe money on your house, so it doesn't make sense to move money from a HELOC vs. a mortgage
- Sure it's possible but why would she do that? Now she still owes money on the house but her interest rate is completely adjustable and probably higher than where it was with her first mortgage. The terms of an equity line or 2nd mortgage are never as good as a 1st mortgage
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Knowledge Base: Mortgage
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Knowledge Base: Home Mortgage
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the recession was caused by people being unable to pay back their home mortgages because the mortgage rates were too high? banks were not getting their money back from home owners, causing a credit crunch, thus they were unable to lend money to big businesses. big businesses then had to (home mortgage)
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help! my wife and i would like to buy a home and / or land. i know that we can afford a payment of $400 a month, and we do not need anything special. a $40, 000. 00 loan would be sufficent. - problem is: i have no clue how (home mortgage)
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