CAN YOU PULL OUT EQUITY FROM YOUR HOME AND USED IT TO PAY OFF DEBT? ?
- Anonymous1 decade agoBest Answer
Yes definitely. If you are paying your home equity loan then you can get extra cash through cash-out refinancing and could pay off the debts.Source(s): A mortgage refinancing company source http://iloanshop.com/apply_mortgage.php for your reference.
- Jeffrey HLv 51 decade ago
Yes you can using a HELOC loan called this for its a tax write offable
Home Equity line of credit=HELOC I got one and it was a godsend.
I got 50k heloc and owned my car and paid off all my Credit cards
in november and went christmas shopping as a gift to me and my family.
then come tax day april 15th I was able to get 7% off my taxes
which netted me 1200 off my tax bill. And what a chritmas we had.
I had the pink to my car. My Visa line balance was 0 nada nothing.
And I got a write off of 1200 more off my taxes cause my carloan
and my old credit debt was now a write off helping me not draining my
checkbook like they both had every month before.
I know your saying yeah but now you still have the debt in a heloc loan
the good part you forget its now write off tax writeoffs not just burden.
Then I took the whole amount added it it was then 16k and I still had
34 k left in heloc money to spend if I liked.
The payments were even less monthly now it was under one payment.
I was paying 320 for the car a month and 170 a month on the 7k
on my credit card. when I got my tax reurn check I banked it to pay the
Heloc down and used it monthly for the first year until the next april 15
Then I got even more of a write off having paid a full year on the
Heloc. made paying the debt off easier I had the pink to the car to sell it at any time I wanted and could have now bought a leased new car
for a smaller monthly payment and used the sell price dollars to help
eliminate almost every bite f the entire heloc. The second tax check
I went out bought/leased a new toyota corolla S which got twice the gas mileage I was getting than from my 3 year old malabu sport.
I sold to a private owner my three year old 48k miles malabu to him
for 4 k over what I owed on the car which paid off the car heloc and
half of my CC debt in the heloc. now I have a new car better gas mileage and I own less than 3900 better than 16k. and a old three year older car with bad gas mileage. try it the only draw back on a heloc is today houses are dropping in value withh this subprime failure
on home mortgages so if you have less than say 70k equity in your place it will be a lower amount heloc made available but even 25 or 35
k will work for some if you try to make it monthly it helps.
cheers try itSource(s): Been there got the tax write off andhe new car monthly I leased since my work was less than 15 miles commute a day one way. cheers. Leasing rocks but make sure you buy the warranty mantenance agreement bumper to bumper and drive train too. the car dealers are dealing now cause the market sucks big time and they have over 120 days car supply on the lotmost dealers and they also have to get the 2009 on the lot now they are hurting and the deals are hot.
- roadrunner426440Lv 61 decade ago
hence the term "home equity loan"
- 1 decade ago
Yes, you are exchanging one from of debt for another.
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- Anonymous1 decade ago
That's how people lose their homes.
- 1 decade ago