With home value rising now is a great time to look into using your home’s equity. Here are a couple of options to explore:
1. Cash-out refinance
How it works: A cash-out refi replaces your existing mortgage with a new loan that’s larger than what you currently owe—and puts the difference in your pocket. With a cash-out refinance, you’re able to receive some of your home’s equity as a lump sum of cash during the process. payoff consumer debt, student loans or do some home improvement.
2. Home equity line of credit
How it works: A home equity loan aka HELOC, is a second mortgage that lets you pull out your home equity as cash. With a HELOC it works more like a credit card. You can borrow as much as you need whenever you need it (up to a limit), and you make payments only on what you actually use, not the total credit available.
For more information, Todd Probasco can be reached at 708.205.2983 or t.probasco@lakesidebank.com
