Is it possible to pull equity out of a paid off house to pay off a second mortgage thereby reducing a variable rate with a 15 year fixed?
2007-08-06 14:53:35 · 3 answers · asked by RB 1 in Business & Finance ➔ Renting & Real Estate
It is always possible to refinance the mortgage (first or second). A house is not paid off, unless there are no more liens on it -therefore no more mortgages or HELOC's ...
But, as it is the case with any new mortgage the credit score and income will limit your possibilities...that means getting a 15 year fixed at a good rate depends on your credit rating and the amount you would be able to borrow depends on your income.
2007-08-06 15:07:14 · answer #1 · answered by Ana B 1 · 0⤊ 0⤋
If there is a second mortgage, how is the house 'paid off'? That's still a lien. Are you wanting a mortgage with a fixed interest rate? That's the best way to go, not a variable equity loan.
2007-08-06 15:05:24 · answer #2 · answered by Flatpaw 7 · 1⤊ 0⤋
Yes, you can mortgage a paid off house to use the equity. That would be a shame to work that hard to pay off a house, then to incur debt on it.
2007-08-06 14:59:56 · answer #3 · answered by Anonymous · 0⤊ 0⤋