Question
i have a house that is paid off but i want to purchase another house so i want to borrow a loan to put 20 precent down on the second house i want to purchase what type of loan can i get is it a equity or is it a second mortgage because the house is paid for.
i have a house that is paid off but i want to purchase another house so i want to borrow a loan to put 20 precent down on the second house i want to purchase what type of loan can i get is it a equity or is it a second mortgage because the house is paid for.
Answer
Equity loan is simply a nice name for "second mortgage", which some people have a fear of (mostly a generational thing, it seems). But you can use those products as a first mortgage, if you have no other debts. And it's probably not a bad idea, since many banks will offer you good terms (under 7%), and they'll pay all your closing costs for you as well. Then you only pay closing costs on the mortgage for the new purchase.
Equity loan is simply a nice name for "second mortgage", which some people have a fear of (mostly a generational thing, it seems). But you can use those products as a first mortgage, if you have no other debts. And it's probably not a bad idea, since many banks will offer you good terms (under 7%), and they'll pay all your closing costs for you as well. Then you only pay closing costs on the mortgage for the new purchase.
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