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Is Mr Mortgage Professor accurate?

http://www.mtgprofessor.com/A%20-%20Second%20Mortgages/second_mortgage_versus_home_equity_loan.htm

The reason I ask is I got a loan. I said it was for bill consolidation which it is. Approved, good interest, very friendly. Ran the papers over lunch time, money deposited into my savings. Later I noticed a line which says that my purpose isn’t to use part of the money to pay a Home Equity Loan or Line off.

Does this mean I can’t use some of it to finish off my second mortgage? Why the heck not? I never said that. No I haven’t called them yet… too late this evening… but it’s buggin me.

Thanks
“Once you have the money in your bank account what do they know what you are doing with your money.”

They will receive all my transactions. I don’t want to violate any terms.
“You can’t use a loan to pay for a loan.
The same reason you can’t use a credit card to pay your mortgage.”

I know you can use loans to pay loans. It’s called debt consolidation.

2 Thoughts on Home Equity Loan or Line vs Second Mortgage?
  1. Reply
    Big Deal Maker
    February 1, 2014 at 8:37 pm

    Once you have the money in your bank account what do they know what you are doing with your money.

  2. Reply
    Silly Goose
    February 1, 2014 at 9:18 pm

    You can’t use a loan to pay for a loan.
    The same reason you can’t use a credit card to pay your mortgage.

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