Can you buy a second house with home equity?

Question by Jason: Can you buy a second house with home equity?
Can I refinance the current mortgage taking out as much as the home equity and use that money as a down payment for a second house?

Best answer:

Answer by patrick
you can use any extra cash you get on any purchase you desire.
You just need to get a new loan approved for the amount you want.
Note however, that the IRS does have limits on the deductibility of mortgages that exceed the original purchase price of the home.

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