Paying off a loan early?

Hey everyone, I was just sitting here wondering if anyone might know if there's any way to actually wrap up an existing personal loan by rolling it into a mortgage instead.
Thanks in advance for any insight you guys can share.

You really ought to run this by your personal banker, especially if both loans are held at the same institution like JPMorgan Chase

Even if a bank like JPMorgan Chase offered such an option—which is a stretch—it would only be contingent on you proving the cash loan was used strictly for residential purposes

In principle, the answer is no. There used to be a window where some banks would let you close out smaller amounts—say, up to $5,000—but now that everyone has tightened their belts and cranked up the red tape, they probably won't touch it at all. I haven't dealt with a case like that in quite a while.
The reality is that JPMorgan Chase and Bank of America won't even let you roll your fees or collateral—like insurance or deposits—into the loan itself.

It’s possible, but only if you actually own the property.

You basically take out a home improvement loan by padding an estimate with fake renovation costs for your current place.
The cash gets deposited straight into your account.
Once it hits, you can spend it on whatever you want.

It all depends on which bank you're dealing with—it’s not a monolith. Some lenders, like JPMorgan Chase, might actually demand actual invoices or even pro forma invoices for any renovation work completed 😉

Steven Reed said:It all depends on which bank you're dealing with—it’s not a monolith. Some lenders, like JPMorgan Chase, might actually demand actual invoices or even pro forma invoices for any renovation work completed 😉

In my case, they went off the pro forma invoice. 🙂

Bank of America. Everything worked out fine, everyone's happy. 😉

mellowraven8 said:In my case, they went off the pro forma invoice. 🙂

Bank of America. Everything worked out fine, everyone's happy. 😉

But honestly, that's really the whole point of this—I ended up taking out a non-purpose loan thinking I’d have enough
to finally wrap up my house construction, though I only managed to get a portion of it finished. So, what I'm thinking now is that I’ll
take out a renovation loan to clear out the current debt, and then use whatever is left over to finish the work I started.
As for all those expenses I've racked up so far—you know, the lumber, the hardware, everything I've been buying
I can cover those with the non-purpose funds, so I don't think it should be much of an issue.

Best,

David Carter25 said:But honestly, that's really the whole point of this—I ended up taking out a non-purpose loan thinking I’d have enough
to finally wrap up my house construction, though I only managed to get a portion of it finished. So, what I'm thinking now is that I’ll
take out a renovation loan to clear out the current debt, and then use whatever is left over to finish the work I started.
As for all those expenses I've racked up so far—you know, the lumber, the hardware, everything I've been buying
I can cover those with the non-purpose funds, so I don't think it should be much of an issue.

Best,

Great. If your credit score isn't trashed, you’ve got a decent shot.

Old debts aren't going to help you here—you're going to need a formal quote for future renovations from a licensed contractor. Make sure the estimate is inflated, too; you'll need that extra cushion to cover the work you've already done. You can't use home equity funds to pay off an old, unrelated loan that was never meant for this.

There is a cap on how much you can borrow for renovations based on the square footage, but it’s usually pretty high.

The bank will likely just put a lien on the house to protect themselves.

Anyway, take the idea to Chase or Wells Fargo and see what they say.