Get a mortgage on a paid-off house4 of 9This isn't, technically, a refi, but it's close. Mortgage-free homeowners sometimes get mortgages to put cash in their pockets."There's a lot of people who don't have a mortgage," Hackett says. "Maybe they want to go to Florida, buy a second home with cash. So they cash out their first home and take the cash and go down there and don't need a financing contingency, and they're in a better position to bargain."They could also take out a mortgage on a paid-off property to start a business or for other reasons.« Back to HARP refi. Related Articles:Conventional refinance?'Cash-in' refi takes offLow score = high paymentLow cost refinanceRelated Links:Refinance home or move?How to kill a loan closingMortgage calculator 101Best mortgage for you? advertisement
This isn't, technically, a refi, but it's close. Mortgage-free homeowners sometimes get mortgages to put cash in their pockets.
"There's a lot of people who don't have a mortgage," Hackett says. "Maybe they want to go to Florida, buy a second home with cash. So they cash out their first home and take the cash and go down there and don't need a financing contingency, and they're in a better position to bargain."
They could also take out a mortgage on a paid-off property to start a business or for other reasons.
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