You’ve probably heard that interest rates are currently at record lows. You’ve probably also heard 2020 is a year like no other. Many people are asking about cash out refinancing or getting a home equity line of credit.
Here are is quick breakdown of the similarities and differences between the two loan types.
Both allow you to get cash out immediately and in both cases you are borrowing against the equity in your home.
The major differences is with a cash out refinance, you are replacing your first loan with a new one and the home equity loan is a second loan to your existing first mortgage and an additional payment.
Cash out refinancing generally has a lower interest rate, as it replaces the existing first loan and is seen as less exposure to lenders.
Please contact us for a free custom evaluation and we can quickly review your case to see how much cash you qualify for and see what program works best for you!
