Exactly as a mortgage was supported by our house one you get for the currency, link fund have to be backed by equity to guard the new lender’s standing. Into the a home, the preferred way to obtain equity is the consumer’s present home.

Like, for those who purchased a special family and took out a connection mortgage to cover the financial on your current household, your own link financing will be supported by your house. Whenever you to definitely residence is offered while intimate in it, the fresh new proceeds from the new closure could be accustomed pay back this new connection mortgage.