Grant deed vs deed of trust

L

lovingit

Member
Initial grant deed shows a purchase home of $1.5m with a $1m mortgage. So borrowed $500k. A few years later, there is a deed of trust for close to $1.2m and then a few years later a deed of trust for another $400k. So does that mean the owner took out an initial $1m mortgage and then borrowed against her house another $1.2m + $400k = $1.6m? Why would she do that vs just taking out a business loan or car loan? Can't the bank take your home if you default payment?
 
Last edited:
The owner probably did a cash-out refi from $1m to $1.2m and then got a HELOC or Home Equity Line of Credit for $400k. Mortgage loans tend to have lower interest rates than business or car loans. Yes, if the payments are not made the bank will take the owner from the owner.
 
You must log in or register to reply here.
Back
Top