Cash-out refinance
A new mortgage replaces the current mortgage and provides eligible cash proceeds. This changes the rate and terms of the full first-lien balance.
Home equity options
Use home equity with the whole cost in view.
Compare ways to access available equity while considering your existing mortgage rate, new payment, lien structure and repayment plan.
Three common structures
The best fit depends on what you already have.
Home equity loan
A second lien may provide a lump sum with scheduled payments while leaving the existing first mortgage in place.
HELOC
A home equity line of credit may allow eligible draws during a specified period, often with a variable rate and changing payment.
Protect a low first-mortgage rate?
A second lien may preserve the existing first loan—but introduces another payment.
When an existing mortgage has favorable terms, replacing the entire balance may not be the most efficient route. A complete comparison should evaluate blended cost, rate variability, fees and repayment risk.
Compare these details
- Fixed versus variable interest rate
- Lump sum versus revolving access
- Current first-mortgage rate
- Draw and repayment periods
- Closing costs and annual fees
- Impact on monthly cash flow
Borrow responsibly
Your home secures the debt.
Using equity can support important financial goals, but missed payments may put the property at risk. Consider the payment under different rate and income scenarios.