Go Back To Search Results Question Can you take out a home equity loan to pay off mortgage and other bills? I have 5 1/2 yrs left on mortgage at 5 3/4 %. Can I take out a home equity loan to pay off mortgage, purchase car and a couple home improvement projects? Interest rate would be lower and I would pay it all off in 5 years. By Posted on 11/26/11 Total Answers 3 Answers- Absolutely. I highly recommend if you're disciplined enough to get out of high interest debt and not open more. I opened a new credit card to get the balance of my high interest card but I put NOTHING on the old card anymore and I will close after the balance is paid. Thing to note, when taking a home equity loan out, you're still giving up partial ownership in your home. Instead of a mortgage it's called a loan but can still be "foreclosed". Happy financing! Answer by : Eris1111 On Date 2011-11-26 13:27:48 ask for a HELOC. that is a home equity line of credit. with it you will have a set total amount, say 25,000.00. and a checkbook. this way instead of taking all the monies at once you can take monies project by project with the max being 25K. you billing will reflect only what you are currently using as you go along. Answer by : Tricia On Date 2011-11-26 16:53:49 I would say that you can do this and hopefully this will reduce your some worries because if you have mortgage payment on your head than I know how much pain it can cause to anyone. I will say that do your calculation make your loan amount and filled your application to your loan office and get paid . first thing pay off mortgage debts and then invest your loan money in your things.. There is no one who can stop you . Answer by : Mark On Date 2011-11-28 01:26:09   Go Back To Search Results