An Equity Take Out mortgage allows you to take out money from your property for some other purpose. Common reasons include renovations, education, business startup, purchase a rental property or 2nd home, invest money at a higher rate of return than the mortgage rate, and more.
If there is an existing mortgage on the property, the obvious impact is that the principal owed on mortgage will increase, so the borrower must weigh the associated cost versus benefits to be received from whatever the ‘take out’ funds are applied to.
Got something in mind? Give me a call or use the contact form on this page and we can go over some options.