Did you know that your home can be a great source of ready cash whenever an emergency arises? Two of the most common ways to cash out on your home are cash-out refinancing and home equity loans. Let’s look at the difference between the two to find out which is better for your situation.
A home equity loan provides cash in exchange for the equity you’ve built up in your property, while a cash-out refinance pays off your old mortgage in exchange for a new loan with a lower interest rate. Both can give homeowners much-needed cash based on home equity.
Cash-out is ideal if you need a significant amount of money and intend to stay in your home for at least a year. Home equity loans are best for owners who need access to cash over a while instead of getting a large amount upfront.
This is not a commitment to lend. Loan approval is subject to credit, underwriting, and property approval. Rates and terms subject to change without notice. Additional conditions and restrictions may apply. Contact us for details.