Customer would like to convert the equity in their home into cash for use in other areas (e.g., vacations, car purchase, child’s education, etc.).
Investment
Customer wants to obtain or refinance the mortgage on the principal residence or an investment property so as to utilize the funds for investment purposes, such as stocks, bonds, mutual funds, and other real estate. Be sure to advise lenders of the purpose of the investment in great detail as lenders differ in their security requirements for mortgages arranged for the sole purpose of investment. Additional documentation may be required.
Increase and Blend (I & B)
Customer is attempting to increase the existing mortgage with the current lender and obtain funds for various purposes. The customer is taking advantage of the blending of rates in the current mortgage contract. Funds of the current mortgage remain at the originally negotiated rate and any additional funds are obtained at the current rate. Be sure to check the lender’s specific requirement with respect to blending and associated fees as they differ dramatically from lender to lender. Specific explanation of reason for the increase in the mortgage must be provided.