
Can You Use Home Equity to Lower the Rate on Your Next Mortgage?
If you sell a home with equity, you may be able to use part of the sale proceeds to pay discount points on your next mortgage. Discount points are fees paid at closing in exchange for a lower interest rate. You can also use equity for a larger down payment, which reduces how much you need to borrow. Whether either strategy makes sense depends on your loan options, finances, and how long you expect to keep the mortgage.

















































