: Homeowners who want to maintain a single monthly payment and potentially secure a lower interest rate on their entire debt. Calculating Your Buying Power
Lenders typically allow you to borrow up to , minus your current mortgage balance. This is known as your "usable equity".
: A revolving credit line, similar to a credit card, where you can borrow and repay funds as needed. buying home with equity
: Buyers who need a specific, one-time amount for a down payment or an all-cash purchase.
There are three primary ways to tap into your home's equity to buy another property: : Homeowners who want to maintain a single
: This replaces your current mortgage with a new, larger loan, and you receive the difference in cash.
: This is a "second mortgage" that provides a lump sum of cash at a fixed interest rate. : A revolving credit line, similar to a
Home Equity: What It Is, How It Works, and How You Can Use It