Quote:
Originally posted by fotze@Sep 9 2005, 02:26 PM
Is it possible to take some of the equity out of your house and use it as a down payment for a new one?
I want to possibly move to a bigger house but would like to keep the original and rent it out. I have probably $130,000 in equity in my house and it would help alot to be able to use it for the new one.
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I tried to do that with a HELOC. You can turn your existing mortgage into a line of credit, and use up to 90% of the value of your home for whatever.
eg:
My house is worth 300k
My mortgage is currently at 190k
I can get a Line of Credit for up to 270k (90% of 300)
which means I have 80k (270-190) to use for whatever (down payment on another home, etc).
I might do that and buy a cabin somewhere.