Use Your Equity To Pay
For Major Expenses
Getting Started
Refinancing with a Cash-Out Refinance or HELOC allows you to use the equity you’ve built in your home to pay for expenses, including debt consolidation, home improvements, college, retirement, savings fund, a second property or any other investment of your choosing. Both options have their benefits and drawbacks. Durand Mortgage Group can help you decide which option is best for you.
Here’s a list of items you’ll need to get started:
- A copy of your government issued photo ID
- Two most recent pay stubs
- Two most recent and complete bank statements
- Two most recent and complete tax returns, if self employed
- Two most recent W2s
- Statements for any assets you want considered
- Copy of most recent mortgage statement and homeowners insurance policy
- HOA coupon/statement, if applicable
Explore Your Options
Home Equity Line of Credit
Cash-Out Refinance
A HELOC is a revolving line of credit that gives you access to cash based on the value of your home. Since a HELOC is backed by your home, they have relatively lower interest rates. You don’t pay interest until you need to use the funds allowing you to repay all or some of it monthly, somewhat like a credit card. Unlike a credit card, HELOCs are not intended for minor expenses. You typically have 10 years to withdraw cash from a home equity line of credit and then 20 more years to pay back your principal and interest.
With a cash-out refinance, you pay off your current mortgage and take out a larger mortgage loan, allowing you to keep part of your home’s equity as cash to pay for the things you need. The new loan from a cash-out refinance may come with a different interest rate and loan term. It’s important to use caution as a cash-out refinance will likely increase your monthly payment and mortgage loan balance.
Home Equity Line of Credit
A HELOC is a revolving line of credit that gives you access to cash based on the value of your home. Since a HELOC is backed by your home, they have relatively lower interest rates. You don’t pay interest until you need to use the funds allowing you to repay all or some of it monthly, somewhat like a credit card. Unlike a credit card, HELOCs are not intended for minor expenses. You typically have 10 years to withdraw cash from a home equity line of credit and then 20 more years to pay back your principal and interest.
Cash-Out Refinance
With a cash-out refinance, you pay off your current mortgage and take out a larger mortgage loan, allowing you to keep part of your home’s equity as cash to pay for the things you need. The new loan from a cash-out refinance may come with a different interest rate and loan term. It’s important to use caution as a cash-out refinance will likely increase your monthly payment and mortgage loan balance.