Home equity loans used as investment?

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We have been small genuine about finance…duh…we have about 300k in
equity in a home as well as wondered when we recover which equity to contend buy a holiday/investment property…are we radically upping your debt by which amount?so we essentially have been profitable stand in may be three times a repayments….pls explain

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Comments (3)

Radar Man said on 06-03-2010

HEL is a second mortgage. The interest rate is normally higher than what you would get on first mortgage. Since you have two loans to pay you the payment will go up. Exact amount is unknown due to interest rate, credit score, and income.
Contact your local bank to get an estimate.
TheGeneral said on 06-03-2010

dont do it untill the market is strong .
engineer50 said on 06-03-2010

The only ways to "release the equity" in your home is by (1) selling it or (2) taking out a loan. If you do the latter, yes, you are in effect "upping your mortgage" by that amount. If you do it via a home equity loan (second mortgage), the interest rate will probably be higher and the term shorter than a first mortgage.

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