Mortgage borrowers collectively hold more equity in their homes now than at any other time on record! If you have a lot of equity in your home and need extra cash, want to make home improvements or pay off high-interest rate debt – a cash-out refinance is one option available to you.
Refinancing means paying off your existing mortgage and replacing it with a new one. It’s a good strategy if you can lower your interest rate, shorten the term of your loan or tap into your home’s equity to get a large sum of money.
However, mortgage interest rates are climbing. If you have a fixed rate mortgage that is under 4.5% a home equity loan may be more beneficial for you.
A home equity loan, also known as a second mortgage, lets you tap into the equity of your home without impacting your low rate first mortgage.
Do your homework! Crunch the numbers first to figure out what loan option is best suited for your needs. To connect with a home equity loan specialist who can help you determine if a home equity loan may be a better choice for you, click the button below.