Taking out a new loan on top of an existing one?

Hey there,
So, I’ve been paying down this loan at Chase for about 36 months now—never missed a beat.
Now, I’m looking to pull an extra $5,000 out of my equity. My goal is to restructure the whole thing: basically have them cut me a check for the $5k and then stretch out the term on the entire balance so my monthly payments drop. Is that even a thing people do? Does the bank force you to close out the old loan and just start a brand new one from scratch, or is there a smoother way to handle it? Just for context, I’ve got a solid, permanent job and my income is well above average. Any insight would be appreciated.

PS.
And please, spare me the "if you make that much money, why do you even need a loan?" crowd. I don't care. Just answer the question.

Rebecca Jones3 said:Hey there,
So, I’ve been paying down this loan at Chase for about 36 months now—never missed a beat.
Now, I’m looking to pull an extra $5,000 out of my equity. My goal is to restructure the whole thing: basically have them cut me a check for the $5k and then stretch out the term on the entire balance so my monthly payments drop. Is that even a thing people do? Does the bank force you to close out the old loan and just start a brand new one from scratch, or is there a smoother way to handle it? Just for context, I’ve got a solid, permanent job and my income is well above average. Any insight would be appreciated.

PS.
And please, spare me the "if you make that much money, why do you even need a loan?" crowd. I don't care. Just answer the question.

I'll offer some different advice 😁 Have you tried asking at the bank directly?

Every situation is unique depending on the client (income, credit score, etc.)...
I actually tried to do the exact same thing with Wells Fargo, but they turned me down. I ended up getting it done at a different bank instead—moved my business over there and secured a loan that restructured my old debt plus gave me some extra cash on the side.

Generally, though, I think it requires a complete restructuring because the terms won't match the original deal... interest rates, monthly amounts, the years...

boldfox15 said:I'll offer some different advice 😁 Have you tried asking at the bank directly?

Every situation is unique depending on the client (income, credit score, etc.)...
I actually tried to do the exact same thing with Wells Fargo, but they turned me down. I ended up getting it done at a different bank instead—moved my business over there and secured a loan that restructured my old debt plus gave me some extra cash on the side.

Generally, though, I think it requires a complete restructuring because the terms won't match the original deal... interest rates, monthly amounts, the years...

Thanks for the input. I’m definitely planning on hitting up the bank, I just wanted to see if this was even a realistic option to begin with.

Of course it’s possible, I mean, it really just comes down to the specific terms and how much you're actually looking to borrow, but honestly, those kinds of loans are pretty common around here.