Mortgages and Numbers

[Arthur Voskanyan]

I just need some clarification regarding home equity loans? For example, if I own a clear free FMV home of $200,000 and I want to purchase another, with a mortgage acquisition, why can’t I put down 99% as the downpayment and have like $1,000 as the loan balance and just own two homes once the $1,000 or whatever the 1% is left? Arthur Voskanyan

[Chris Mason]

Originally posted by @Arthur Voskanyan:

Ok, let’s say I use the home as collateral and let’s say I put down 75% of that $200,000 ($150,000) and finance the rest of about $50,000. Just to make the numbers bigger for the bank. Would that be legitimate, they still make their interest on $50,000 and I really didn’t put any money down, just if I default they take my home, and I only have to pay up $50k + whatever interest occurs right?

Arthur

 What's the point/goal of all this?