You nailed it on the second mortgage idea. A HELOC is the bank saying here have this line of credit worth x amount of what you home is worth minus the mortgage you have.
Home is worth 100k
Hold equity of 40k
Hold mortgage of 60k
89% of 100k = 89k
Line of credit you could get 89k - 60k = 29k
@Nicholas Scatton Yes, I misspoke. I corrected my reply.
Okay I got it now. Thank you guys for clarifying!
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