Quote:
Originally Posted by purplepeach
Can you use a home equity line of credit to pay off the remaining loan on the property??
We bought on a C4D and cannot pay it off by refinancing with a bank because there is an annual limit on our payments (tax reasons for seller). We could, however, pay an extra $25k each year to pay it down early. Can HE/2nd mortgage be used for this?
Our equity would be enough value for this.
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Yes, it's actually pretty common when people get towards the end of their mortgage since you typically can't refinance that small of a mortgage.
Only thing to watch for is the variable rate on an LOC or the shorter term on a Loan, but some banks actually advertise this as a reason to take out an equity loan.
Equity loans can be used to pay off primary mortgages
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