If you occasionally need quick access to cash, look no further than your home! As long as you’ve owned it for a while and built up some equity, the cash you need is ready and waiting. Here are 3 ways to access the equity in your home:
- Cash-Out Refinance. Here, you refinance your existing mortgage to an amount larger than you currently owe, and the extra cash is yours to spend. Now’s a good time to refinance since rates are at historic lows. But you’ll have to pay closing costs of up to 3% of the loan amount, and the time it takes to pay off your mortgage will be longer. Find out if a cash-out refinance is the right option for you.
- Home Equity Loan (second mortgage). With this option, you keep your original mortgage and rate, and take out a second mortgage for the funds you need. Again, you’ll pay closing costs, although some lenders may waive them.
- HELOC (Home Equity Line Of Credit). This is a second mortgage that functions like a line of credit. You only pay interest on the cash you use, and you can repay it in part or full at any time. HELOCs are useful for emergencies, since they cost nothing until you actually start withdrawing cash. They generally have lower or no closing costs, and approval is often easier because they’re subject to fewer qualification requirements.
For more tips and information about how to access the equity in your home, contact Ideal Lending today! Rates are still at historic lows, now may be an excellent time for you to refinance. Find out how much you can save with our instant refinance tool or download a free refinance guidebook to learn more.
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Ideal Lending is dedicated to helping you afford the American dream! At Ideal Lending, you will work one-on-one with a dedicated mortgage loan officer who can explain loan programs and offer great mortgage rates to meet your financial goals. Contact us today!