Access to Extra Cash - Cash-out Refinancing
The difference between the value of your home and the amount owed on your loan is the definition of equity. Your home is a tremendous asset and you may use this asset to free up cash for major expenses or to consolidate debts.
Tap into the equity you've built in your home and do a "cash-out" refinance with The Hanna Team. In this scenario, you can refinance for an amount higher than your current principal balance and take the extra funds as cash. This can provide money for remodeling your home, paying off high-interest rate bills, or sending your kids to college.
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What is a home equity loan? A home equity loan allows you, the homeowner to get a loan by using the equity in your home as collateral. Your home equity is the percentage of the home that you own; it’s the difference between the current value of the home and the amount you still owe on your mortgage.
A home equity loan is a secured debt because it is debt against your own property. Home equity loans have allowed millions of Americans to take control of their debt.
Home equity loan vs. Home equity line of credit
A home equity loan can be obtained in a lump sum or used as a revolving home equity line of credit.
A home equity loan can be either of the following:
- A fixed rate mortgage
- An adjustable rate mortgage
A homeowner who requires more money in large amounts usually applies for a home equity loan. Some expenses that make a home equity loan useful are:
- Debt consolidation
- Home repairs
- Medical bills
- College tuition for family members
More information on home equity loans