Home, Land, Property Buying and Selling - use "equity" for new purchase?

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sgull
02-26-09, 10:09 PM
Bought house a few years ago for $239,000 with 30-year mortgage. Have paid into it about $90,000 to date. Now am considering perhaps trying to buy an older mobile home outright for maybe 40,000, paying full price up front. Am wondering how/whether it works or what it's called if I wanted to get the $40,000 somehow out of the $90,000 I've already paid into the $239,000 house, while meanwhile having the $239,000 up for sale. In other words I want to buy the mobile home and have it to live in while the house is up for sale, but I don't have the money to buy the mobile home yet but wonder if I can buy the mobile home with the equity I guess it's called that I have into the house already.

Hopefully it is clear what I am asking. Any advice/comments appreciated.

md2lgyk
02-27-09, 10:27 AM
What you're asking about is a home equity loan. These are, basically, a second mortgage. What you might be able to get this way has nothing to do with what you paid for the house originally, or what your mortgage balance is. It would be based on, among other things, what the house is worth today. That could be less than you originally paid for it considering real estate is in the toilet most places. Any lender will insist on an appraisal.
sgull
03-01-09, 03:59 PM
What you're asking about is a home equity loan. These are, basically, a second mortgage. What you might be able to get this way has nothing to do with what you paid for the house originally, or what your mortgage balance is. It would be based on, among other things, what the house is worth today. That could be less than you originally paid for it considering real estate is in the toilet most places. Any lender will insist on an appraisal.

Thanks for that reply. So would a first step probably/absolutely be to get a current appraisal of my home? (I just paid 600 dollars for one a few years back). Or should I first ask my lending institition (the bank to which I am currently paying my mortgage and of which I would be checking on the possibilty of the second mortgage) what they would need to get the ball rolling?

dougm
03-24-09, 02:22 PM
Go to your lender first. They will arrange for any appraisal that might be needed and it might be done at no cost to you. You may be able to do a home equity loan or a home equity line of credit depending on the bank's offerings and the laws in your state. The line of credit often has a lower interest rate. In most cases, you will not be able to borrow any more than 80% of the equity you have in the house.

Doug M.