Your home is probably your most valuable asset. The equity you have in your home is an often-used measure of your financial worth.
Sometimes your personal and financial goals require cash. Most people don’t have large amounts of money readily available to spend on a college education, dream vacation or home renovations. Wouldn’t it be nice if you could tap into your home’s equity to fund these out-of-the-ordinary expenses?
At MortgageDepot, we make it possible with our innovative mortgage and refinancing programs! Here are three ways to get the cash you need from the equity in your home:
- Home equity loan: A home equity loan is a second mortgage at a fixed interest rate. It might be a good option for people who want to consolidate high-interest debt.
- Home equity line of credit (HELOC): A HELOC acts as a revolving line of credit, allowing the borrower to use their home equity as needed. It’s a helpful tool to use when the borrower doesn’t know exactly how much money they will need, such as funding their child’s college education.
- Cash-out refinance: A cash-out refinance replaces your current mortgage with one that incorporates your cash needs, and you can pocket the difference. If you know exactly how much extra cash you need, this program is a good choice.
Each program comes with specific requirements, but they all have this in common: The more equity you have in your home, the more cash you can access. MortgageDepot suggests increasing your home’s equity by:
- Making additional payments on your mortgage’s principal balance.
- Making value-added improvements to your home.
- Refinancing your mortgage to a shorter term.
- Improving your credit score.
If you have a mortgage in Pennsylvania and want to use it to your advantage, contact MortgageDepot today. Our loan officers will help you determine if taking cash equity out of your home is the best path to your goals!
Contact us today or email us here to learn more about our mortgage solutions.