Ask Terry Questions Home Equity Line of Credit

Home Equity Line of Credit

By Terry Savage on November 07, 2017 | Housing / Real Estate

How is it possible to refinance a loan when debt to income is not what banks want, even though home is paid for, and have over $400,000.00 liquid, also numerous retirement accounts.

Terry Says

Well, something doesn't ring true here.  Are you retired, with no current income to show a bank?  What kind of loan do you want to refinance? Why aren't you using some of that liquidity to pay off the loan, or a good part of it, so you don't have to pay so much interest? Banks aren't allowed to include retirement accounts as "assets" for the purpose of a loan -- because they can't "attach" a retirement account if you don't pay.   I hesitate to tell you that if you're over age 62, you could take money out of your home via a reverse mortgage.  But that would put your most precious asset at stake to carry a debt doesn't make sense.  Please write back with more details.



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