Did you know that your home can be a great source of ready cash whenever an emergency arises? Two of the most common ways to cash out on your home are cash-out refinancing and home equity loans. Let’s look at the difference between the two to find out which is better for your situation.
A home equity loan provides cash in exchange for the equity you’ve built up in your property, while a cash-out refinance pays off your old mortgage in exchange for a new loan with a lower interest rate. Both can give homeowners much-needed cash based on home equity.
Cash-out is ideal if you need a significant amount of money and intend to stay in your home for at least a year. Home equity loans are best for owners who need access to cash over a while instead of getting a large amount upfront.
Essence Lending LLC NMLS 2476488. Essence Lending is an Equal Housing Lender. For informational purposes only. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend or extend credit. Programs, rates, terms and conditions are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.
