Mortgage refinance on a paid off house?

Dante
Is it possible to pull equity out of a paid off house to pay off a second mortgage thereby reducing a variable rate with a 15 year fixed?

Shara
It is always possible to refinance the mortgage (first or second). A house is not paid off, unless there are no more liens on it -therefore no more mortgages or HELOC's ...But, as it is the case with any new mortgage the credit score and income will limit your possibilities...that means getting a 15 year fixed at a good rate depends on your credit rating and the amount you would be able to borrow depends on your income.

Christiane
If there is a second mortgage, how is the house 'paid off'? That's still a lien. Are you wanting a mortgage with a fixed interest rate? That's the best way to go, not a variable equity loan.

Beaulah
Yes, you can mortgage a paid off house to use the equity. That would be a shame to work that hard to pay off a house, then to incur debt on it.