How your home can help you buy another propertyMortgage Basics
Your home can help you buy another property in a few different ways:
- Home Equity Loan: If you have built up equity in your home, you may be able to take out a home equity loan, which is a loan that uses your home as collateral. You can use the proceeds from the loan to purchase another property.
- Cash-Out Refinance: Another option is to refinance your existing mortgage and take out some of the equity in cash. This is known as a cash-out refinance and can provide you with the funds needed to purchase another property.
It’s important to carefully consider your financial situation and goals before using your home to purchase another property. Talk to a financial advisor or mortgage professional to determine the best option for your individual needs.