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.
Savings Corner
DECEMBER 25, 2023
If you do a cash-out refinance to pay off credit card debt or finance college tuition, you’ll be paying off unsecured debt with secured debt — a move that’s generally discouraged because of the possibility of losing your home. Potentially higher interest rate. Time-consuming.
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. The options include: Home equity loans: A home equity loan allows you to borrow a lump sum of money upfront and repay it in equal installments at a fixed interest rate.
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. Loans often don’t charge origination fees , which’ll save you money at closing. You’ll get all of the loan proceeds at closing and can spend them however you see fit.
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