Frequently Asked Questions

What's the difference between a home equity loan and a cash-out refinance?

Second mortgages are mainly home equity loans or home equity lines of credit (HELOCs). In other words, these are second mortgages that you take out on top of your primary mortgage. As a result, they become second liens on your property, making them more hazardous. A cash-out refinance is not a second loan; it is a new first mortgage.

What exactly is equity? How may it assist me in obtaining cash from my refinance?

The appraised value of your home minus the amount you still owe on your loan is your home equity.

The more equity you have, the more money you may be able to get from a cash-out refinance. Many homeowners borrow money to pay off high-interest debt or upgrade their homes. Use our refinance calculator to check if you have enough equity to meet your financial goals.

What determines how much cash I get after refinancing?

In general, the cash-out amount is calculated by subtracting the balance of your old loan from the new loan amount; however, a variety of additional factors, such as applicable fees, the type of loan you obtain, and your equity, may influence your final cash-out amount.

How much does it cost to refinance?

It's possible to add the costs of getting a new mortgage into the total refinance amount to avoid paying anything out of pocket at closing. However, refinancing to get cash out may result in a longer loan term or a higher rate, which might mean paying more in interest overall in the long run.

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