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> You can't take the mortgage with you One wonders perhaps, why is that exactly? Why can't you trade one bit of collateral for another similar bit of collatera
by Gibbon1 3y ago
> You can't take the mortgage with you
One wonders perhaps, why is that exactly? Why can't you trade one bit of collateral for another similar bit of collateral?
You owe $300k backed by a $700k house and you want to swap that for a $500k house, why should the note holder be able to call in the loan when you do that?
- pedrosorio 3y agoDoesn’t the bank have the right to refuse to grant a mortgage in the first place, depending on the asset? It’s not like you tell them you’re buying a house worth x and they give you a mortgage for 0.8x, right?
- Gibbon1 3y agoBanks are heavily regulated and aren't loaning out their own money.
- ghaff 3y agoBecause you no longer own the asset that is the collateral for the loan.