Mortgage company says my equity in my home is $300k

>mortgage company says my equity in my home is $300k
>know for a fact that it's closer to $250k and they're over-estimating the value of my home substantially
>they're offering me up to $150k in HELOC
>2.5% mortgage interest rate
>3.5% HELOC interest rate
Am I retarded or are they basically offering me free money? The extra 1% is pennies on top of what I'm already paying on the mortgage, and even if the housing market goes tits up, it means I now have a shitton more cash to continue making minimum payments on while scooping up cheapies. The only way I see losing is if all markets go flat/negative this decade like in the 1970s, but with most markets already down 30% or more, that doesn't seem too likely.

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>HELOC
I mean home equity loan, derp.

The latin of the word "Mort" is death. And "Gage" means offer. A mortgage is a death offer. Do you understand?

Already have a mortgage and it's quite comfy.

yes, they are offering you free money
no hidden things that could screw you the fuck over... no champ! Lucky you

It's a fixed rate for the home equity loan and there's not even a prepayment penalty. I feel like there's got to be an obvious catch (maybe I'll call them and the next day they'll call back and say "Whoops actually your home equity is only $250k after all") because otherwise this seems like an obvious source for the next big capital injection, all those boomers and gen x'ers taking out big home equity loans to fuel the next market rally, while rentoids continue to seethe.

go for it champ! Very cool wall of text!

if the value of your property goes down you might have an obligation to make additional payments. read the fucking contract

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Not in this case, it's a fixed loan.
That's the exact opposite situation. I have a mortgage with substantial equity, and they are quoting a high price to convince me to hold a mortgage for longer.

Unless that's your point? You're saying that housing prices are about to go up? Because if that does happen, I'm only out the extra 1% interest on the second loan which I other could have had appreciate. Not to mention my home equity goes up regardless because I will still have close to 20% down even after taking a max loan.

>Not in this case, it's a fixed loan.
if you cant pay the bank gets your house. if the value of your house goes down the bank might want to have more securities to back your loan or rates will increase (but its called different)

>if you cant pay the bank gets your house.
Obviously. But even if I lose my job the moment I take the loan, the loan itself is worth at least 2 years of payments, interest, and cost of living. And as I said, I have plenty of liquidity to survive even longer without income and the mere extra 1% on $150k.
>if the value of your house goes down the bank might want to have more securities to back your loan or rates will increase (but its called different)
In this particular case it's a fixed loan because it's still fundamentally backed by the first mortgage. You might be European but in America 99% of home mortgages are 15/30 year fixed mortgages.

>You're saying that housing prices are about to go up?

I couldn't guess either way and I don't know anything about US mortgages. Somebody I know is trying to convince someone else I know to sell now because she's up $600k, housing market is definitely in euphoria stage which leads me to think they'll crash at any point, but it's also clown market and houses (for now) seem to be the safe asset of choice for investment firms.

I'm a smallprint / legal autism type of guy so I'd advise you get a copy of the terms and conditions and really comb through it, maybe ask a professional to point out any blatant disadvantages hidden in there, which I'm assuming they are. The banks and usurers are not your friend, they wouldn't be offering something if it didn't benefit them somehow. It would be hard for me to resist a cash injection to beef up my portfolio in preparation for 2025 though.

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>The banks and usurers are not your friend, they wouldn't be offering something if it didn't benefit them somehow.
They're still making more money off of me by effectively extending my mortgage and increasing my interest rates a little. In a time where the average for new mortgages is around 5.5%, it makes sense that they want to make those of us with 2-3% mortgages add more to their cash stream.

Naturally, this can't go on forever, if everyone piles on more debt cash will be king again, but I'm saying that it seems like home equity loans are going to be taken more often in the future, and to profit from the inevitable bubble that creates, taking one now would be as good a time as any.

What fucking retard drew this? That's not a checkmate.

Congrats user, you've stumbled across the secret to free money. I am so, so excited for you.
As your zestimate continues to grow indefinitely, the bank will offer you access to even more riches.
And this should go without saying...but if a nigger of color inquires about this little trick, you tell them get a job, yeah?

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>that board position
People who don't know chess and can't even use a real game as a guide when making art/tv/movies is so triggering.

Bishop covers the white squares, others are blocked by pieces, knight can't be taken and duly delivers checkmate. It turns out you are, in fact, the idiot.

>free money
no, they're offering you a six figure line of credit that's collateralized by unrealized gains of your house. it's not free and it's not money, it's a massive amount of debt.

Bishop d5-e8, rook c3-g4, then O-O-O castling and white already has major advantage on the queen's quarter, going for Traxler in 6 moves.

It increases their chances of repo-ing your house due to defaulted payments
Houses need to have fuck all in equity on the balance sheet compared to loans because they're the safest asset since ever.
Also, loans are higher rates than mortgages and thus they can more than double their income from you "for that new addition!" Or whatever bullshit they're selling now