Savings Corner

APRIL 4, 2024

Christina Zelow Lundquist/ Getty Images; Illustration by Austin Courregé/Bankrate Key takeaways Cash-out refinancing allows you to turn equity into cash through refinancing your mortgage. While you can’t cash out all of your home’s equity, the process gives you access to a larger sum of money without needing to sell your home.

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Savings Corner

DECEMBER 25, 2023

Many people use the cash from a cash-out refinance to fund large-scale home improvements, education expenses or debt consolidation. If mortgage rates have increased since you bought your home, you may think twice before refinancing. After the draw period ends, you may no longer take money out, and you pay the principal plus interest.

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Savings Corner

APRIL 4, 2024

Home equity lines of credit (HELOCs) and home equity loans are two similar finance tools — methods of borrowing money against the ownership stake you have in your home. But it’s a revolving debt that offers an amount of funds (a replenishable balance, similar to a credit card limit) tied to the level of equity in your home.

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Savings Corner

APRIL 4, 2024

You can use your equity to renovate some rooms, pay off credit cards, cover college tuition, start your own business … or almost anything else. It represents the total debt against the home: both the original mortgage and the size of the new home equity loan or line of credit. Here’s how to calculate the equity in your home.

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