Newsflash: I have an unusual question about mortgaging my property and investment… (USA)

I currently own the land and 2 homes that sit on the land. I have no rent, no house payments, etc. The only monthly bills I have are the basic utilities, water, power, etc. I’ve recently started a home business, very small. I WANT to buy some tools/equipment, I don’t need it but I want to get it sooner than later.I was curious about taking out a loan or mortgage against my land with 2 homes and using that money to buy the things I want, and putting 80% of the remaining money into an interest earning bank account. Is this a common thing for people to do? I have good credit, I could just get a loan, but I saw this as getting a large amount of money and then using it to earn interest as I don’t even need 80% of the money as I stated.I’m looking for thoughts and tips on the situation, I’m under 50 and I’d appreciate any info you all have. Thanks Also, I figured after I get the things I want, a few years down the road, if I decide I want to go ahead and pay the mortgage off early, is that possible so that I won’t have any interest from the mortgage each month? Or is the interest come off the top from the start no matter how long I pay it back if the terms are 10 years, etc?



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