My sister is asking me for money to pay up her home equity line. When I asked about her mortgage payment, she said she paid it off with her home equity line. Is that possible to borrow money on your home to pay off your home?
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.meanwile its batter to discuses with the home mortgage professional.A friend of mine showed me mortgage professional website . Good luck!..
Can you pay off a home mortgage with a home equity line of credit?
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Is your sister in the habit of lieing to you?
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No bank would give you a equity line knowing you’d pay the mortgage with it. Even if she got away with it, it would be a stupid move as mortgages have the lowest interest rate of any loans around-that’s a terrible waste of your credit. More than likely an equity line’s rate would be higher so you’d be paying extra money to pay off the mortgage-again, not smart. Even if your mortgage had some crazy high rate, you wouldn’t get an equity line large enough to pay off the remaining mortgage-the only possible way you could would be if almost all of the mortgage was paid off and at that point most of the interest has been paid off so it’s another stupid move to pay what could arguably be called "free money" at that point. You get my drift? Nothing in this could make sense and even if she did get away with it, it would be a terribly stupid move to make with her money.
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Technically, yes you can get funds from you HELOC, and pay any bill you have, including the mortgage. BUT, the mortgage interest is normally lower than the HELOC interest rate. I mean, the HELOC is a open line of credit, and she just writes a check for the amount she wants for whatever bill. She could even write a check to pay this months HELOC bill, but that is again, just plain stupidity. The real question is why should you pay up her loan?
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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.meanwile its batter to discuses with the home mortgage professional.A friend of mine showed me mortgage professional website . Good luck!..
References :
http://www.homemortgageinquiry.com/