Taking on new mortgage for line of credit.

[Gary Wong]

My mom and I have been living in North Texas for more than 15 years now. The home I live in growing up is now worth around 180k. She still owe about 70k in it. I am thinking about helping her refinance for a couple of reason.

1. Her interest rate is 6% which is really high and she has really bad credit. Helping her refinance can lower her monthly cost.

2. If I take on the mortgage, can I use the 80k equity on the house to obtain a new investment? or possibly use it for a flip.

I just want to get other people's opinon on this. Whether this is a good idea or bad idea.

[Account Closed]

Originally posted by @Gary Wong:

It's just like taking equity out of any existing house, i understand there is always risk. Worse come to worse, she can live with me. I am not too worry about the risk when it comes to investment. I won't pull the trigger on the investment unless I am super comfortable with it.

That is an incredibly callous approach to your mothers future. What if she doesnt want to live with you? There is no such thing as a no risk investment. How do you know what is a good investment? How many investment houses have you bought or flipped? Let me guess: ZERO.  If you had experience you would have cash. Houses are not piggy banks. They are peoples homes. And this is not even YOUR home. Take the risk on your own home, not your elderly mothers! You will probably do it anyway, but I strongly suggest you become a big boy now and find your own source of funding and not depend on your mother. I dont mean to be harsh but this is really a train wreck waiting to happen.