Home Equity – What’s the catch?

Question

Friends. I keep getting emails from my mortgage company offering a chance to pull from my 30k+ equity. How does that work? What happens if I try and cash it out?

In: Economics

Answer 1

You have to pay it back. That’s the catch. 

And when you pay it back, you’ll be paying interest on that 30k. (Just like the interest your paying on the home loan now)

And your mortgage company would really like you to pay them more interest.