But I Don't Have A Second Mortagage! (yes you do)
By Karen Butler, Eglin AFB/ Fort Walton Beach /Destin Relocation
(RE/MAX Coastal Properties)
When you borrow money using the equity in your home, to buy something, make repairs or consolidate bills, it is a loan. You have heard the terms Equity Line of Credit, Equity Line or even HELOC. They all mean the same thing: you are taking out another or 2nd mortgage on your home. And yes that money has to be repaid. When I am trying to sell your home, for $200k and you have borrowed $50,000 on average, I have to find a way to get your home sold for $250,000. If the value of your home is only $225,000 we have a problem, because you have to come up with the additional $25,000 plus closing costs. People mistakenly think that they can finish paying for the loan after the house is sold. NEGATIVE! You pledged your house as collateral for receiving that loan. Therefore, they aren't tryin...
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