Refinance Mortgage

My brother and I need cash for a business venture and would like to take a loan out against an residential investment property that we co-own free and clear. Is our only option a Home Equity Loan? Ideally we would like to take advantage of the lower rates of a standard mortgage.

You’d want a cashout refinance, and then you’d take 100% of the loan proceeds, minus closing costs. Fixed mortgages have better rates than HELOCs, so a regular mortgage is the way to go.

My sister is asking me for money to pay up her home equity line. When I asked about her mortgage payment, she said she paid it off with her home equity line. Is that possible to borrow money on your home to pay off your home?

If her home mortgage rate was higher than her line of credit it makes sense. I do not have a home mortgage but I do have a line of credit on my home.

Normally you can just make interest payments on a equity line if you want. My heloc is locked for 5 years with minimum payment being the monthly interest.

Normally people do borrow on their home to pay off their home when they refinance.