Читать книгу Flipping Houses For Dummies - Ralph R. Roberts - Страница 69

In many ways, equity is funny money — or fuzzy money. Nobody really knows how much you can sell your home for until you actually sell it, so borrowing against equity is a bit risky. Before taking the leap, be well aware of the risks:

 If real estate values drop, you may owe more on your home than it’s worth. If you have to sell it, you’ll end up selling it at a loss.

 Unlike some types of loans, mortgage and home equity loans use your home as collateral. If you can’t afford the higher house payments on your new loan, you may lose your home in foreclosure.

 If interest rates rise, refinancing at a higher rate or for a longer term results in paying more for your current home — potentially, tens of thousands of dollars more — than if you had kept your old, lower-interest loan.

 Frequent refinancing can cost you thousands in closing costs that may take you years to recoup.