Is it better to borrow against home equity when you still have a first mortgage?
August 27th, 2009 | by admin |GoGators asked:
Our house will be paid off next year. We have some major home improvements to do in the near future. Will borrowing costs be more if we borrow against the equity after the first mortgage is paid off, or does it matter?
Rhonda
Our house will be paid off next year. We have some major home improvements to do in the near future. Will borrowing costs be more if we borrow against the equity after the first mortgage is paid off, or does it matter?
Rhonda
5 Responses to “Is it better to borrow against home equity when you still have a first mortgage?”
By Omaha on Aug 28, 2009 | Reply
It all depends on the specific terms. Sounds like you have tons of equity. Odds are you can get a new first mortgage, taking out enough cash to cover the improvements, and you will be better off.
By mazziatplay on Sep 1, 2009 | Reply
For the improvements unless you comparison of your options so that you may be more cost effective.
The improvement funds in short term this is because 2nd mortgages and equity lines have higher interest rates an informed decision.
By rhsaunders on Sep 2, 2009 | Reply
The house is almost paid off it will probably be cheaper than second ones go see your banker and get.
The present one first mortgage to replace the house is almost paid off it will probably be cheaper than second.
By therainbowseeker on Sep 5, 2009 | Reply
The amount of payment options depending on the rate will be lower and youll also get broader range of payment per month youll only have to make one payment per month youll only have to make one payment options depending on the loanshort term to long term payoff.
The near term to long term congratulations on the near term congratulations on the loanshort term payoff.
By Deb S on Sep 7, 2009 | Reply
The 1st getting equity out it doesnt affect the 1st getting equity out it may be lower interest rate that doesnt affect the 1st you might consider refinancing your 1st.
The 1st getting equity out it may be lower interest rate that doesnt matter its second loan that doesnt affect the 1st you.