Asked in Foreclosure and Real Estate Law for Pennsylvania

Q: Regarding second mortgage?

I have a 3.25 interest rate on my mortgage, is it a good idea to cash out as a second mortgage for 5.99 or higher? Thanks.

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1 Lawyer Answer
Nellie T Schulz
Nellie T Schulz
  • Philadlephia, PA
  • Licensed in Pennsylvania

A: I have no idea. It would depend on a variety of factors, including the outstanding principal balance of your current mortgage, the amount you are considering borrowing, the market value of the property now and what it may be when you may sell the property, what type of property is involved, the loan to value ratio, what the cash would be used for, what your current debts and known future debts may be, your overall financial status, etc., etc. Attorneys are not financial advisors - we just know what the laws are. I suggest you obtain financial advice from a professional financial advisor who understands you, your risk tolerance, and your overall finances thoroughly, and not take the financial advice of an attorney over the internet who is a stranger to you.

W. J. Winterstein Jr. agrees with this answer

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