Home Equity: How to Use It
Thinking about using your home’s equity? Here are a few ways you can tap into that money. Refinance Your Home This is a way of paying off your current mortgage and getting cash out based on how much equity (the difference between the market value of your home and what you owe on it) you have in your home. Refinancing can be a great way to lower your mortgage interest rate. Remember that on refinances, you might have to pay closing costs. discount points, appraisal fees, application fees, recording fees, and miscellaneous other charges. Always ask your lender about additional fees. Securing a Home Equity Loan A home equity loan, a.k.a. a second mortgage, is good for homeowners who don’t need as much cash, and whose mortgage interest rate is already competitive. The term is much less than a conventional 30-year mortgage; usually 5 to 15 years. Home Equity installment loans are paid out in one lump sum, so they’re good for paying off credit cards or remodeling projects , ...