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You replace your current mortgage with a brand-new, larger one . You pay off the old loan and keep the extra cash for your next purchase. This is most attractive when current interest rates are lower than the rate on your existing mortgage. 3. The Strategy: Making Your Money Work Once you have the cash, you have two primary paths: how to use equity in your home to buy another
While this is a powerful wealth-building tool, it isn’t free money. AI responses may include mistakes
You keep your first home, turn it into a rental property to cover its own mortgage, and use the equity cash to buy your new primary residence. You pay off the old loan and keep
There are three main ways to pull that money out without selling your current house: