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How do you take out a mortgage and spend it on something other than a property? That has to be fraud regardless of what you purchase, right? This worthless arti
by darkstar999 9y ago
How do you take out a mortgage and spend it on something other than a property? That has to be fraud regardless of what you purchase, right? This worthless article didn't explain much.
- ceejayoz 9y agoA home equity loan is a form of second mortgage. You can take money out of it for whatever purpose you like.
- stephengillie 9y agoIt sounds insane to me, but some banks offer home equity credit cards, to leverage your home to buy clothing or other items.
- anm89 9y agoLets say you own a 200k house outright. You take out a mortgage for 200k. You now have 200k debt on the house on 200k cash which you could spend however you want with no responsibility to the bank beside your monthly payment
- onion2k 9y agoA mortgage is just a loan secured against an asset like a property. If you already own the property you can secure a loan against it and spend the money on whatever you want. Even if you already have a mortgage you can take out a second one for the value of what the property is worth in excess of the value of the first mortgage ("unlocking" the equity).
- IncRnd 9y ago> How do you take out a mortgage and spend it on something other than a property? You already own property and take a loan with the property as security.