Borrowing against your home equity looks good on paper. But don't do so, unless it's a dire emergency, such as a medical emergency. It shouldn't be done as you'll be putting yourself more in debt. For if you were to want or need to sell your house, you'd not be making any profit and your mortgage lender will end up with the money you make off the sale.
You will receive any excess of the payoff of the mortgage when you sell your home. It doesn't all go to the lender. You may also get more for your home if you invest in upgrades and improvements with borrowed money.
To say that your mortgage lender will end up with your profits, is a misnomer. Better to say that you must take responsibility for your loans, since you'll be forced pay them back before you get to count any possible profit from the sale.
Login using the form on the top of the page to post feedback (if you are a registered user). If you have not yet registered, click here to do so. It's FREE!.
