You are now responsible for two loans. If the rental market dips or you lose your income, both properties are at risk.
While this is a powerful wealth-building tool, it isn’t free money. how to use equity in your home to buy another
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: You are now responsible for two loans