Is this correct? Financial aid questions.

xiggi
Thu, 24 Apr 2008 21:42:25 +0000

Getting a second mortgage might be a wash or actually hurt. If you get a 2nd mortgage, your liabilities increase, but so do your assets, and the significant increase in cash or equivalent may have more impact than the increase in debt.



This is not true in the case presented by the OP. The cash raised by the second mortgage goes to payoff other debts. This amounts to move a liability to another liability.