AboutBobbi Buehl Expertise Home mortgages is my expertise
Experience Experience in the area 15 years Organizations Mortgage Brokerage Education/Credentials BS in Chemical Engineering, BA in Sales and Marketing. Licensed Loan Officer for 6 years and I have worked as a Loan Officer for 15 years.
Expert: Bobbi Buehl Date: 4/22/2008 Subject: Home Equity, financing a home
Question Hello, I have a mortgage on my current home, right now I am looking to get something bigger and have found a place that I like. What I would like to do is, keep my current home and rent it out, and move to this new place. I estimate that my home has appreciated in value about $35,000. What do I do in order to take that equity and use it towards the new house as a down payment? Will I have to pay interest on that $35,000? Please give me any information on what I need to do and what I need to ask for when I go to the bank. Thank you for your help, and I look forward to hearing back from you.
Andrew
Answer Hi Andrew,
To take an equity loan out on your present home, contact a local bank and see what you qualify for first. Then contact a Broker to see how much you qualify for on a new home.
Yes, you will have to pay interest on the equity loan, but you get to deduct it from your taxes. Just make sure you can rent your house out for more than the equity and the original loan amounts.
