Great Time to Refinance
Lowering your payments...it's very easy!
Changing the terms of your mortgage can lower your monthly payment.
Why pay more than you have to? Don't miss out on super low rates!
Why would I refinance my home loan?
Homeowners refinance for many reasons. Refinancing may help lower your monthly payment, access a portion of your home’s equity as cash, or shorten your loan term to pay off your mortgage sooner.
It can also support life changes such as removing a co-borrower, changing loan programs to better fit your needs, or eliminating mortgage insurance. Whatever your goal, refinancing can be a strategic way to realign your home loan with your current financial situation.
Should I do a Cash-out or a HELOC?
Both loan types tap into your home's equity which is determined by comparing the current market value and how much you currently owe.
First, what are you trying to achieve, what's the end goal?
-
How much cash do you need?
-
How long do you need it?
Second, what's the difference?
Cash-Out Refinance
A cash-out refinance allows you to restructure your current home loan by resetting the timeline, loan amount and interest rate while putting hard cash in your pocket for ready use. This would get you a one-time, lump sum amount back to you with a new monthly mortgage payment.
The life of this loan is typically 15-30 years.
HELOC (Home Equity Line Of Credit)
A HELOC is an additional loan against your home, often referred to as a second or third mortgage. A HELOC allows you access to a revolving line of credit for a 5-10 year drawing period. With this comes an adjustable interest rate for the life of the loan and interest only payment during the draw period.
The life of this loan is typically 10-20 years.
I don't want to give up my LOW rate!
Many homeowners hesitate to refinance because they’re holding onto a great interest rate. A low interest rate is valuable, but it’s only one piece of the puzzle and adding high-interest second loans can cost more than expected.
In some cases, a cash-out refinance allows homeowners to access cash on hand for flexibility or future needs, consolidate debt, reduce the number of loans, and potentially create a lower overall monthly payment, even with a slightly higher rate. When you look at the full financial picture, meeting in the middle can sometimes be the smarter long-term move.
If you’d like more information about home loans...
Let's Chat!
