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.
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.
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?
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