If you have cash needs, tapping into your home’s equity could be a solution. Newrez provides several ways for you to get cash from the equity built up in your home. These options are a cash-out refinance, a Newrez home equity loan and a home equity line of credit (HELOC).
Each of these options have different features so you can select the loan that best fits your finances and your lifestyle.
Home Equity Options: A Head-to-Head Comparison
Perhaps you’re looking to finance some home renovations, or you’re wanting to consolidate your debts into one simple payment with a lower interest rate. Whatever your reason for unlocking your home’s equity, these products might help:
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Cash-Out Refinance†
With a cash-out refinance, you refinance your existing mortgage into a new, larger loan. The difference between the new mortgage amount and the existing balance is given to you in a lump sum of cash.
Features:
- Converts equity into a lump sum
- Typically carries a fixed interest rate
- Gives you a new mortgage term
- Changes interest rate to current mortgage market rate
A cash-out refinance may be a good option for someone looking for a single lump sum of cash and a single monthly payment at a reliably fixed interest rate. For instance, a lump sum payment may make sense if you already have your budget laid out for a home improvement project.
Newrez Home Equity Loan††
A Newrez Home Equity Loan lets you access your equity by taking out a second loan. That way, you’ll access a lump sum of cash while preserving the term and interest rate of your first mortgage.
Features:
- Converts equity into a lump sum via a second mortgage
- Typically carries a fixed interest rate
- Allows you to keep the term and rate on your primary mortgage
A home equity loan may work best for someone who doesn’t want to change their current interest rate or payoff timeline for their primary mortgage, and would prefer to pay off their home equity separately.
Home Equity Line of Credit (HELOC)^
A HELOC is a revolving line of credit secured by your home equity. It works something like a credit card in that there is a set amount available to you and you only pay interest on the amount you borrow.
Features:
- Draw cash when you need via revolving credit
- Variable interest rate based on the prime rate published daily in the Wall Street Journal®
- Draw period (ex. 5-10 years) followed by repayment period (ex. 10-20 years)
A HELOC may work best for someone who wants the flexibility to draw funds whenever they need, perhaps if they face unpredictable expenses. Learn more about HELOCs here.
Take Advantage of Your Home’s Equity
The equity you’ve built up in your home is yours to use how you like, whether you’re paying off school debt, upgrading your living space or anything else.
Have more questions about how you can tap into your equity? Our mortgage experts are happy to walk you through your options. Set up a chat today.
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^ This HELOC is an open-end line of credit where 75% of the approved full credit limit (minus the origination fees) will be drawn at the time of closing. Additional draws may be available after a 90-day period within the first 3 years not to exceed the available credit limit. Actual rates available to you may vary based on several factors including your credit score and combined loan-to-value. Loan amounts range from $50,000 to $350,000. We may determine home value and resulting equity through independent data sources and automated valuation models. Only available for eligible borrowers and property types. Not all applicants will be approved, pre-approval is based on data you have provided and certain assumptions that must be verified and subject to underwriting approval. Only available to existing Newrez serviced first lien mortgage customers on owner occupied properties. Not available in all states or territories. Contact Newrez for more information.
This is not a commitment to lend. All loan programs are subject to credit, underwriting, and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply.
