How To Use Your Equity To Buy Another Property -

Equity is the difference between your home's current market value and your outstanding mortgage balance. However, lenders won't let you borrow 100% of it.

Most lenders cap your Combined Loan-to-Value (CLTV) ratio at 80% to 85%. how to use your equity to buy another property

Using your home's equity to purchase another property is a strategy often called . It allows you to use the "unlocked" value of your current residence as a down payment or even the full purchase price for a new investment or vacation home without depleting your personal savings. Step 1: Calculate Your "Tappable" Equity Equity is the difference between your home's current