Can you borrow more money than the house costs on your mortgage loan to pay off a car loan?
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I am paying on a car loan and was wondering when applying for a mortgage loan can I borrow extra than what the home costs to pay off the car loan?
No, mortgage investors loan on real property, not personal property. Your loan will be limited to the amount required to finance the property only.
Usually the answer is no but it is a function of your loan-to-value ration. If the house is worth much more than your loan amount, you can borrow against the equity. As a extension to this, you may be able to borrow against your down payment. If you say, put down 20% and you find an home equity loan that will go to a 90% LTV, then you can borrow half of your down payment. This may sound tricky but many loan brokers do this for people with less than the typical 20% down payment.
Be weary of loans offering 100% or higher LTV. They are very dangerous.
You have the right idea-Good Luck!
No, you can’t. Lenders will only qualify the mortgage based on the purchase price. You can’t finance more than what is stated in the contract of sale. Good Luck.