4 Thoughts on I own a property free and clear. Would I qualify for a “refinance” or only a home equity loan?
  1. Reply
    February 5, 2014 at 7:52 am

    By definition, a refinance means you pay off an existing loan. A home equity loan normally means a SECOND mortgage. I your case, you should qualify for a FIRST mortgage. The terms should be no less favorable than you would receive refinancing an existing loan.

  2. Reply
    Go with the flow
    February 5, 2014 at 8:44 am

    Sounds like you need to sell that property.
    You are close to retirement?
    Remember the rule for retirement: To be 100% debt free.
    That means no mortgages or home equity loans.

  3. Reply
    February 5, 2014 at 9:03 am

    it has to be a permanent residence to apply for an equity loan.

  4. Reply
    Lisa L
    February 5, 2014 at 10:02 am

    You could do a cash out refinance if you qualify. If it is because you really need the money you may be better off selling it. Using a home as a cash cow is never a good idea. Guidelines are different for a second home than for investment property so if you rent it out more than 2 weeks a year (I believe it is still 2 weeks) it is considered investment property. You can still do it, just a few different guidelines & rate.

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