From: "Disney Anna" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Mortgage on owned property
Date: Sat, 2 Sep 2006 13:22:02 -0500
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"Dee"  wrote in message 
news:Xns983265ECB458Dddd888@ispnews.usenetserver.com...
> It seems most mortgages are obtained in order to purchase a property. 
> What
> if you already own a house free and clear and want to pull out that equity
> to invest elsewhere?  In other words, how easy or difficult is it to 
> obtain
> a mortgage on a property that is owned free and clear?
>
> Thanks, Dee
> .
>

This is called a home equity loan.  If you're taking out the loan to invest 
the money elsewhere, you need to take a good, hard look at the 
risks/rewards.  Can you get a better return with the investment you're 
thinking about versus what your house will appreciate?  Are you okay with 
possibly losing your home if your investment declines or if other 
circumstances (job loss, illness, etc.) interrupt your income?

Personally, I would never use a home equity loan for another investment, and 
I don't recommend it to others, either.  A better plan is to take the money 
you would be paying back to the loan company, and invest that on a monthly 
basis.  It's cheaper, too -- no interest.