Can We Get a Loan on the Equity in Our House Without Refinancing? – Dorothy

We want to get cash out of our house, but wonder if we can do this without refinancing the house. Because if we refinance it will take longer to pay off the house. We have 6 more years to pay on it. We want to consolidate our bills with the cash.

Dear Dorothy,

If you are basing your ability to borrow on the equity in your house the lender will most likely want to secure the loan with the house as collateral. While it would not require refinancing it would add another loan against the house.

You could always look at a cash out refinance on a 15 year mortgage and prepay it at your current mortgage payment so it is paid off early. This would refinance the remaining balance due and allow you to take some cash out to pay off your debt.

Or you could look at an unsecured debt consolidation loan through LendingClub.com or Prosper.com. This would be entirely separate and not involve your house at all.

I’m curious, how much debt do you have that you are trying to pay off and how much is your current mortgage balance and your house worth now?

Please post your responses and follow-up messages to me on this in the comments section below.


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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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1 thought on “Can We Get a Loan on the Equity in Our House Without Refinancing? – Dorothy”

  1. I want to know if it is wise to borrow against my home equity and not refinance to pay off $25k in debt.  the property is my rental and not enough equity to refinace but enough for a second loan against the home.


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