If you need money to fund home improvements or pay off debt, you can access your equity via a cash-out refinance or a home equity loan.
With a cash-out refinance, you’ll pay off your current mortgage and take out a new loan with a higher balance. After fees are deducted, you’ll get the difference in a lump sum.
If you choose a home equity loan, you’ll keep your current mortgage and take out a second loan. Interest rates for home equity loans are typically higher than rates for
cash-out refinances.
Lenders limit the amount of equity that you can access with a cash-out refinance or a home equity loan.
Interest rates vary by lender. Your credit score and debt-to-income ratio will affect your rates.
Shop around and get offers from several lenders. Compare the interest rates and fees to figure out which deal is best for you.
