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Can I use the equity from my first home to get a better mortgage on another property?

If I own a home full and out and I am buying another home as an investment/summer home, can I use the equity in my old home to get a better rate on my mortgage? I have okay credit in the low 700s and haven't had a mortgage in about 7 years. by charl._279_679 from Seattle, Washington. Nov 16th 2011 Reply


Paul McFadden (paul.mcfaddenmortgages@gmail.com)
#42 ranked lender in Washington - 45 contributions

Charl: the rate for a second home should be the same as for your primary home. If you can put 20% down that would be ideal. That way you won't have mortgage insurance. Good luck and let me know if you have any additional questions. Thanks!Paul

Nov 16th 2011
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Paul Benezra (PaulBenezra)
#50 ranked lender in Washington - 66 contributions

Yes, I would be hapy to go over the details with you. you can reach me at 425-272-2723Paul

Nov 16th 2011
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Steven Cook (stcookmortgage@gmail.com)
#38 ranked lender in Washington - 256 contributions

The rates would be roughly the same, however, you would most likely have to put the 20% down if you were using the investment property as the security. On the other hand, if you are buying investment property that is less than 75% of the value of your primary residence, you could fund the entire amount of the investment property using the primary residence as collaterol. If you are a veteran there are some fees you can avoid using a VA loan - but that would then be on the primary residence. You have a good proposal, and you might want to talk to several lenders to find out what they are offering, and how they service matches up to your needs.

Nov 16th 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

with 20% down, the rate is about the same...WilliamAcres.com

Nov 16th 2011
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Al and Cindy Lane (Al Lane)
#1 ranked lender in Washington - 38 contributions

Absolutely that is something you can do and with 20% down your rate would be the same on a vacation home. However if you are looking to buy a rental/investment property the rate would be slightly higher. If you would like, you can call me at anytime at 360-901-1023.

Nov 16th 2011
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Kelechi Ibe-Ekeocha (kchomeloan)
#539 ranked lender in California - 4 contributions

You can do a home equity loan and get the cash out from that to use for the down payment of the investment property. With the 700s score you should be able to get a good rate. My name is KC and I am the senior loan officer for the company. Please feel free to contact me at 858-939-9252 and I will be more than glad to assist you with your housing needs.

Nov 16th 2011
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Joshua Coombs (joshua)
#51 ranked lender in Washington - 6 contributions

Yes, you would get a better rate by financing your investment property with the equity from your primary residence. The rate that you would get for a cash-out refinance on your primary residence will almost always be better than the rate that you would get for an investment property. Additionally, you could take advantage of your interest for tax purposes.Feel free to call me at 425-272-2726, or email me at joshua@cascade-equity.com. I would be more than happy to help you.

Nov 17th 2011
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