TLC Lending :: Home Equity

Home Equity or Refinance?

Cash-out refinancing involves paying off your primary mortgage with a new mortgage with a lower rate but higher loan amount (i.e. to cover the equity taken out and closings costs). Home equity financing involves taking a second mortgage against your home with a higher rate but with a lower loan amount.

Typically, if your 1^st mortgage has a rate higher than the current market, you may want to do a cash-out refinance. However, if your 1^st mortgage has a lower rate than current market, you may want to do HEL or HELOC.

Should you do a cash out refinance or home equity? The answer is simply the out-of pocket expense to secure the loan, monthly payment, and the interest cost savings over the life of the loans. Our intereactive {Home Equity v Refinance Calculator} can show you which option is best!

If you know what you want and you're prepared,