Can You Use Your Equity To Buy Another House?

[@TheBandoury]

One thing to pay attention to, if you have a mortgage on your current property with interest rate that is LOWER than the market interest rate , leave it alone. To pull out cash from your equity , the cash and your existing mortgage interest rate will be matching the current market interest rate, you'd be increasing the interest rate on your old mortgage . you'd be better off taking out a new mortgage for your prospect investment.

[@srinivasa2260]

Since you borrow only what you need, the loan balance on a HELOC is almost always lower than the balance on a cash-out refi. That means lower monthly payments. And your existing mortgage payment, rate, and term won't be affected by the new HELOC. In addition, HELOC payments are based on the amount of credit in use.

[@kathyannbryant3243]

What about a home equity loan, not a HELOC, & you're able to take the cash out that way? Where the first lien is let alone with it’s lower interest rate.

[@MegaGsizzle]

@@kathyannbryant3243that’s exactly what I’m thinking

[@silverpod]

The quality of your content-succinct, accurate and right to the point-is so good. Also, your calming tone of voice about complex topics make your channel very pleasant. Thank you for sharing so much valuable information! This is quickly becoming my favorite channel!

[@WinTheHouseYouLove]

Thank you so so much!!

[@elizabethchwakanowski5067]

I second that!!!

[@ryanturner3062]

These are the type of classes we need in our highschools..

[@WinTheHouseYouLove]

For sure!

[@choosetoshine2610]

Totally

[@chelacastillo9247]

I totally agree with you! I'm a cashier at a high school and they don't even know how to count their money!🤦🤣

[@exile3469]

That will never happen unfortunately

[@bismarkreich245]

Well it's on youtube

[@arunodaichanda7945]

I watched your video during my first home purchase and now I am watching it for my second home. You have been excellent. Thank you.

[@WinTheHouseYouLove]

Awesome! Thank you!

[@rabmakz2564]

@@WinTheHouseYouLove me too

[@KnownAsSimo]

Always delivering golden knowledge and advice! I just turned 23, closing on my first house at the end of June and will be using that as my primary residence to cash out refinance and buy my first investment property in the future! Thank you for everything you do 🤝

[@tootsiewunderlandzzz]

I don't even have an idea about mortgages but your voice is so calming like I'm watching an asmr. What a great video. What a great teacher.

[@WinTheHouseYouLove]

Wow, thank you!

[@sarahvice6326]

This is right on time for me! My husband and I have a house appraised at around $285,000 to $300,000 range and only owe $63,000 and need our equity to do some upgrades but were told that a heloc wasn’t the smartest route by my mother but she wasn’t sure what other options were available and now I have our answer a cash out refinance and buy other properties or a property which we also wanted to do! Thank you,thank you for this information!!

[@WinTheHouseYouLove]

I'm so glad to hear, Sarah!! You're welcome and thanks for watching!

[@Uskdr97]

When you do a cash out and your mortgage amount increases, do you get to keep the rate you already have?

[@Miranda3730]

@@Uskdr97 It's called Cash out REFINANCE, meaning you are refinancing your home, and that will be done at the current mortgage rates.

[@BadForYourKidneys]

@@Uskdr97 refiancing right now would not be a good idea UNLESS you have a solid exit strategy, if you have a low rate then i wouldnt take the risk as a 2-4% is a great deal in this market.

[@kathyannbryant3243]

You could also do a home equity loan through a credit union, take the equity & that way you’re not repaying interest only, as in the HELOC!

[@lizhernandez1622]

I usually have a hard time understanding new housing concepts and felt like I understood this with one watch, you taught it so well! Super helpful!

[@Rapano53]

Thank you that is awesome. How long must you wait before purchasing a second house? How much equity is good to purchase a second house?

[@graphicsociety1]

This is super informative and concise with a good quality recording. Thank you so much.

[@WinTheHouseYouLove]

Glad you enjoyed it!

[@ChefBlairSilva]

Good job , clear , calm and direct. Appreciate your efforts

[@WinTheHouseYouLove]

Glad you liked it and thanks for watching!

[@carlosoro15]

My guy, this video is awesome! I’m a new realtor in the San Francisco Bay Area. I just had two nice ladies that asked me about the market. They have owned their current home for about 20 years… They aren’t thinking about buying or selling but I didn’t use the words to tell them that they could use their home equity to buy an investment property with the current home they own! What you said in this video is exactly what I should have told them… I’m going to contact them again and hopefully I get a second shot of redemption to potentially encourage them to invest in a rental property 🙌🏼 Thanks for sharing!

[@WinTheHouseYouLove]

Awesome! Thanks for watching & best of luck!

[@carlosoro15]

@@WinTheHouseYouLove l already have 2 buyers under my belt! 🙌🏼 I had a vision of doing exactly what you’re doing with your channel and then I found you. This motivated me even more and made me realize what my channel and my marketing could be through KZbin 🙌🏼🤓 Feel free to reach out if you’re ever in the Bay Area. I’d love to stay in touch!

[@macventurezrn7143]

Thank you for this knowledge.

[@daniellemccollough4112]

This was great! Very thorough and helpful. And your voice made it even sweeter! Melodious.

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@shuhan1304]

Quick question 🤔 can I do Cash Out Refinance on a investment property?

[@LivingWithTheGuzmans]

Thank you

[@WinTheHouseYouLove]

My pleasure. Thanks for watching!

[@BestiaProductions]

Problem with heloc loans is it is hard to get one if you own a business. I have a house worth around 200-250k and no mortgage but since I have low income “due to owning a business” I can’t qualify. How bizarre. But maybe I need to keep trying other banks…

[@tarawalton6778]

Mmmmmm, interesting. 🤔 I was not aware of this.

[@natespics8276]

Very straight forward and like the math. Thanks helped me figure out a cash out value.

[@WinTheHouseYouLove]

You're so welcome! Thanks for watching!

[@motivateinmotion5073]

Thank you for the simplicity

[@WinTheHouseYouLove]

You're welcome!

[@efrenvega8063]

Thank you for sharing some knowledge, it really clarified important points for me.

[@WinTheHouseYouLove]

Glad it was helpful!

[@SamadRouf]

I have one question Let said if you paid off your mortgage. Can you able to take 100% equity to buy another house?

[@stevelopez372]

Usually not. Varies from Bank to Bank. Loan to Value (LTV) around 80-85%. They leave themselves a cushion I guess.

[@stevenmartinez8076]

Cashout refinance on 1st bought primary residence home , use the equity as down payment on another home as new primary residence, convert my 1st home that was refinance to a rental property. What lending terms are required when trying to achieve this? Does the refinance loan require 20 percent down since the house is now intended to be rental ? Tax & insurance implications on the converted primary to rental ?

[@stebolavirus]

This is the best video out there on this topic by far! Thank you!!

[@WinTheHouseYouLove]

Wow! Thanks for watching!

[@crb4059]

The question is what rate of return do you want from the invested money? If the heloc is say 8% int, your rate of return on the invested capital needs to exceed that for it to make sense. Ive done it before and seldom makes sense in the end.

[@jama7379]

What an amazing voice!!!

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@RetrieverTrainingAlone]

We paid off our mortgage years ago. We are going to downsize and then sell our larger house in a couple years. Would a home equity loan or a traditional mortgage loan be better in this example?

[@veronicatorres-g.1807]

simple and to the point 👍🏽

[@WinTheHouseYouLove]

Yay! Glad it was concise! Kyle Seagraves → winthehouseyoulove.com

[@whoisjessie]

Which would you recommend over the other when wanting to take the equity from your home to use towards closing costs and down payment on a new primary residence then sell the homeboy took equity out of ASAP. Cash out, home equity loan or heloc?

[@WinTheHouseYouLove]

HELOC is likely the best

[@thames33]

Apologies for the remedial question, with that $90,000, is that the amount that you have to pay back to the bank or is that the cash that we gained from the house that you can use for the down payment for a new home? Thanks

[@diegohurtado9098]

How would one find out if we would even QUALIFY for a second mortgage on a second home, this video brought up that good point for me. Im about to start paperwork on a cash out option.

[@WinTheHouseYouLove]

Usually, you need at least 20% equity in the home to begin looking at pulling out a second mortgage. Start a conversation with a lender to see what options they have available or a gameplan to get you where you want to go.

[@craigstormoen970]

Just the video I was looking for thanks for making it understandable

[@WinTheHouseYouLove]

Glad it helped

[@mishtistales3480]

Is there any way to have the HELOC with 0% APR for some period (1 year?) like it happy with many credit cards?

[@sae.4]

Thank you for making this clear.

[@noy6184]

Great video. Could you make video for first time home seller?

[@WinTheHouseYouLove]

Great idea, I will add this to my list of ideas. Thanks!

[@joedoe7839]

No bridge loan?

[@columbus400]

I have an investor question for you.. I hope you could help me , Current mortgage payment is 1880 on duplex I only have to put up 480 $ a month to cover the mortgage with rents (house hacking) If I refinance I can pull $83k out of the home to put towards another investment But then that would bring my mortgage up to 2,472!! When I move out with my current mortgage payment the house will cash flow $1000+ a month, If I refinance it will only cash flow 500 a month Would it make sense to buy another asset By refinancing even though it will reduce the cash flow by 50% Kind of doesn't make sense to Purchase another house To make possibly 500 a month off of when I could make double with one- Or should I just hold off on the refinance and save to buy the next( wouldtake foreverto save 80k ) ?

[@SuperTopher01]

We have no mortgage. What is the smart choice to purchase a second home in a warmer climate. We would love to be there for the summer and rent through a Home and Away or VRBO for times we are not there. Your thoughts?

[@WinTheHouseYouLove]

It's great that you're considering a second home in a warmer climate. To make a smart choice, you should factor in your budget, the location, and potential rental income. It would be helpful to talk to a real estate agent familiar with the area. You can definitely rent your second home on platforms like HomeAway or VRBO when you're not using it. That can be a nice way to earn some extra money to offset your expenses. 😄 You would use a Conventional loan to do this and a second home requires 10% down. If you're ready to start on a pre-qualification, head over to www.winthehouseyoulove.com/lender or feel free to email me at [e-mail]. Good luck and happy house hunting!

[@danielbudimir8519]

If I take a heloc on my primary residence, that requires primary residence.Can I buy( closing costs)a new primary residence with the money without defaulting...because I do plan to sell the first.

[@beldecorainspiration8194]

Hello, i have a question, can i used my equity to invest in an other business? 2. Can we have the equity in cash?

[@tina.tr9n]

If I did a cash out refinance to put money down on another property, do I need to pay for 2 closing costs? Or can I combine and do this all in one? I have a property that is already paid off and wanted to pull out some money to put towards another home. I am wondering which would be the better option if it would be a cash out refinance or a HELOC? Thank you so much in advance for your response!!

[@WinTheHouseYouLove]

Since they're separate properties, they would each have their set of closing costs. Keep in mind, closing costs aren't just random fees charged by a lender. They are costs from multiple different places: title, taxes, appraisal, insurance, recording, etc. HELOC is usually a cheaper option than a cash out

[@tina.tr9n]

@@WinTheHouseYouLove thank you SO much for your response!! It is greatly appreciated!!

[@MegaGsizzle]

What do you think about a home equity loan instead of a HELOC

[@c19commander44]

January 2021-I went to my bank to buy a second house as a rental property using the EQUITY. which is over $50,000 i have on my current house. well. my 53/fifth third bank told me it will take 3 months for me to use the money from my house as a EQUITY. and a bunch of other bull shit. So no its not easy to use money from a current house you own. another finance company told me that if i buy the house as a Rental Property the INTEREST ARE HIGHER. i said. dont my interest is based on my Credit Score ?

[@WinTheHouseYouLove]

Well, technically you're using a loan secured against the equity. Which is why you still have to follow the rules of a loan. Interest rate is based on your credit score plus tons of other things, like residency status. Investment properties have higher interest rates than primary residences.

[@oj8010]

Hi, value of my property got increased a lot in 2021-2022, how fast I can apply for HELOC after a purchase?

[@paralifetv-youreverydaywhe8314]

Can I take equity out of my rental property and pay off my primary house mortgage?

[@inclantayakajackie284]

When do you start paying on the principal on the HELOC?

[@matthewmorgan7755]

This was really great. Thank you

[@GreaseMonkChronicles]

I have some Equity on my home can I use that for a investment property, and qualify for a traditional mortgage for the rest 75%. And how do I pay off the equity? Also my mortgage is locked at 2.65 %, with these rates you don’t think cash out refi would work for me right?

[@nebretfeysa6484]

Thank you. Great advice🙏

[@angelopezzanti4675]

what if I own my property free and clear? what are my options then ?

[@WinTheHouseYouLove]

Hi! Yes you could use the available equity on you second purchase. You can also ask your lender/ agent about the details.

[@zaloalvarez6947]

Do i have to pay of the equity i take out? Also, does my payment go up after i pull my equity? I live in california.

[@WinTheHouseYouLove]

It's totally up to you. :) HELOCs come with variable rates, meaning your monthly payment can go up or down over the loan's lifetime. Some lenders offer fixed-rate HELOCs, but these tend to have higher initial interest rates and sometimes an additional fee. Good luck!

[@Lindalug2255]

Can I use Heloc if my house is in a living trust?

[@RyGuy2024]

Excellent excellent video. Perfectly communicated breakdown. Thanks for taking the time. Grateful

[@WinTheHouseYouLove]

Glad it was Helpful! thanks for watching. :)

[@trey-tjackson8106]

Ok say I cash out on a 100k home and use that to down payment 2nd home could I repeat the process ok the 2nd home to get a 3rd?

[@karangulati2005]

Thank you for a great video and sharing your knowledge!!

[@WinTheHouseYouLove]

My pleasure! And also, thanks for watching. :)

[@gloriashipmon9666]

Do you have to so income to pay for both mortgages?

[@ravennamoonrise]

Can a cash-out from an existing mortgage be used as a down payment for another primary residence? A new mortgage would be needed to close on another primary residence. The intent is to sell the original primary residence.

[@shaphanharvey4607]

When u use the cash out method and refinance your mortgage 30k higher than original. Does your monthly payments increase to or you just have to pay longer

[@Patti059472]

Great video! Just a few questions: 1. Would you recommend doing this? Pulling out equity on a home for a down payment in a possible invent property 2. * might be a stupid question* Does taking out equity affect anything that has to do with the home other than raising the mortgage payment?

[@WinTheHouseYouLove]

Thanks! 1. That's a very common strategy that works well 2. Nope

[@wavygoods877]

Is there a limit on cash outs? Let’s say you own a multi family unit. Can you pull out every other year to buy a new property?

[@danielmaldonado6388]

Really fast question, would ihave to refi for the helicopter? Or I'll be just approved for the equity I build exp.20.000, and got it kinda like a credit card but my mortgage stay the same?

[@kathyannbryant3243]

What if you do a home equity loan, & take out cash without including the first lien?

[@LondasBookClub]

Hello, could this possibly work if it's a new construction home? Before moving in we had 40k+ in equity. Wanting to rent it out and purchase another home. Thanks

[@ammars600]

Can I deduct the interest payments if I take heloc to buy an investment property?

[@isabelcarantes8181]

Thank you so much for sharing your knowledge.

[@WinTheHouseYouLove]

My pleasure!

[@Richp20]

Awesome. So now I understand. My next question would be, does it financially make sense to get a HELOC to upgrade to a second primary residence???

[@WinTheHouseYouLove]

I think it would be worth comparing a HELOC vs a cash-out

[@fortunatopp]

Thanks buddy. Exactly what I was missing

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@TheJackabrown1]

What if u already payed off ur first home. Want to buy another and move into it before selling first one?

[@Dust5ky9]

Amazing video. Thank you

[@RetrieverTrainingAlone]

OK I paid off my house, so $400 k of equity. Now how could I use that to buy another house worth $350k and still keep the original house without paying >8% interest rate?

[@MrLeo625]

I like this channel, keep up the good work

[@WinTheHouseYouLove]

Thanks, will do!

[@micah1754]

Thanks for a really informative video. I’ve paid down a decent amount of my mortgage. It still have about 40% owing. When I looked at the equity I could free up to put down on an investment property, it seemed like it may not stack up financially. Rental income would be quite a way off covering the mortgage and costs of the property, and would be on top of the loan I have already on my main home. Interest rates are very high in NZ currently. I guess it’s a question of whether longer term it will appreciate enough to make it worth it. Maybe. With the stress of that and being a single person, thinking focusing on paying down my own home mortgage and putting some into index funds may be a better way forward. Welcome any thoughts

[@ZillitheKid91]

Great Video! Here’s an example, tell me yes or no! My property is worth 600k, I’ve paid down 160k, I owe 400k. Can I not take a home equity loan of 160k(80% of 200k equity?) Your response is greatly appreciated, thanks!!

[@Jameselcome_303]

Thanks for the info - useful well explained

[@eduardotijero6900]

What happens in a recession/depression where the borrower is now unemployed and the housing market crashes 40/50% due to higher interest rates? Do banks account for this or are the banks banking on this scenario to ultimately get the property, sell it and start another cycle with new "home owners."?

[@shayparis4604]

Will your interest rate go up on your mortgage with the cash out option? We bought our home at 3.2% and now the market is at 5.4%

[@patriot2372]

Someone said you change the Heloc to a "rate of return" which is a higher cost heloc? Is that true when you use the heloc equity to buy another property?

[@Ben-yw8be]

Is it possible to use the equity of my current house to purchase a larger house and make that as our primary residence and have the former house be a rental property? Thanks.

[@onewayoranother3370]

If you get a Home equity loan on you house for a second house. Do you need to pay the loan balance and your second mortgage?

[@Sammyalqattan]

Thanks dawg, good explanation.

[@WinTheHouseYouLove]

Thanks! Glad it was helpful!

[@goodenoughgirl8102]

If I have an inherited property (no mortgage) and currently rent half of it out (this is my only source of income right now), and I want to move and downsize for myself (out of state), what options would make the most sense? It seems that I would have to wait around and collect rent for another year before I could qualify for any kind of loan income wise. (Per what I’m hearing as providing proof of income for 2 years prior). At least as far as I understand so far. And Bcuz since moving to a new state, I won’t have a diff job until after I move there. It seems that I might need to finance maybe $25-50k of the new place if I did a mostly cash buy for the new house. I just feel stuck and lost (first time home buyer). Any advice would be most appreciated. The rent is steady and growing and pretty good money, but my heart is in another state. (And living with renters is no picnic for me lol). I have a fam arrangement with someone who wants to buy the house, but I also have to have somewhere to live when I leave. Or if I keep it and rent the other half out, I’d have to finance most of the new home I’m moving to. I also have no other debts and a so so not great credit score. (Above 620 but not much lol).

[@ricosuave7102]

I already have a duplex but I want to buy another duplex,triplex or 4 family. My house is worth about 75k and I owe 43k. I need to know how much cash I need to buy another rental property without stretching myself to thin monthly.

[@matthewglaser1812]

Is the interest deductible using these types of loans? Publication 936 seems to indicate interest would not be deductible when using equity loans to purchase or invest in a separate property - is that correct?

[@TheSquiggleySpooch]

How often do lenders allow HELOCs to be used for a down on a new home? I have about 700k in equity (thank you los angeles) and want to pull 100k for a down on a 2nd home, but my current loan has a 3.65% interest so i don’t want to refinance since rates are double now! Are banks hesitant to allow you to use HELOC for downs?

[@oshitomaha]

so if I take out 40k HELOC from my first property, and want to use it as down payment to buy a second property, not only will I pay mortgage for second property, but also gotta pay the 50k HELOC correct? is there any way to mix the HELOC debt with the second property and refinance?

[@nikeairmj2010]

This was super helpful thank you man

[@WinTheHouseYouLove]

Glad you think so. Thanks for watching. :)

[@Demonte202]

Would if someone buy home in cash can you still get equity out before selling it?

[@sabugdalantx]

I am in a house now paid full valued at 160k and we want another house at 400k, should I use this?

[@huskersue5123]

Great video..simple explanation. Thanks

[@WinTheHouseYouLove]

Glad you liked it. Thanks for watching. :)

[@Cole320]

Can you use HELOC proceeds for down payment of another primary residence, then roll that HELOC into a first on the new primary residence and leave the first’s terms on the original property in tact. Upgrading homes and planning rent my current primary residence

[@AveontheGrizzly]

I am wondering this.

[@felicia1ofakind]

Great video! Does this rule apply to investment properties as well?

[@WinTheHouseYouLove]

Thank you so much for watching!! :) I'm not sure which rule you're mentioning

[@latinacruk]

Very very informative! Thank you very much.

[@WinTheHouseYouLove]

I'm glad you found the video informative! Please let me know if you have any other questions as you navigate the home buying process. When you're ready, go ahead and schedule a call with our team to get started on your pre-qualification: www.winthehouseyoulove.com/call

[@Matt.R.B]

Great info. What is it he probability of cash out options, and refinancing that in a year or two? Are mortgage companies actually willing to do that?

[@stevenmercado6666]

Hey great work !!!!! Right on point !!!! , my question is I currently own a single family home and looking into buying my first rental property , I want to start the process should I deal with my current lender and then go too others lenders just to see who has the best rates and options? And also should you let the lender know your game plan on buying another property will that effect your options at all?

[@ewlinitis]

Use a mortgage broker and realtor with experience in rental properties and 2nd mortgage.

[@apmwpny]

Steven, I know it’s been a few months since your post here and I don’t know how far ahead you are with your research for purchasing your second home…. What I wanted to indicate, and you may have already been informed, is that for second or investment homes the down payment will be a bit higher than would be on a first home. If you do qualify for a conventional loan, the minimum down payment will be 10%, but could be higher than this percentage depending on your own qualifying circumstances.

[@Universe728]

Thanks for the info!

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@TheNewcharter]

Awesome video. Very informative.

[@WinTheHouseYouLove]

Glad it was helpful!

[@gfernandez2124]

This was amazing! Thank you!

[@WinTheHouseYouLove]

You are amazing too! Thanks for watching. :)

[@eric-seastrand]

Wouldn’t this be a red flag to the second home’s lender if there’s a giant HELOC against the first property, or a 80% debt-to-value ratio on the first home (increased debt to income ratio)? Do you explain it to them? If yes, How?

[@TheTeena273]

Hi v informative video. Can I use HELOC from my current home to make a down payment towards buy a primary residence? Is this strategy acceptable by mortgage lenders for a primary residence?

[@WinTheHouseYouLove]

I just recorded a personal video reply for you: vid.us/ptr73m

[@SSS222232211]

Very well explain. Thank you

[@WinTheHouseYouLove]

Thank you so much!

[@steelernation1895]

I purchased my home in August 2021