Mortgage Vs. Home Equity Loan Situation?
my father and his two brothers were gifted my grandfather’s house when he passed away. i told my father i would like to take the house from them so he moved the house from my grandfather’s trust to my name. in return i need to pay them for the house. however, because i will now already own the house, can i still get a mortgage to pay them or can i only get a home equity loan? i ask because mortgage rates seem much lower than loan rates. are there any other options?
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You will need to do a refinance which in essence is a home equity loan. A loan used to get equity from your home is a home equity loan. Many people apply this term to 2nd mortgages and HELOC (home equity line of credit) loans only but it is not so. Home equity loans can be first or 2nd mortgages and that is normally where the difference in rate can be found.