What is the Benefit?
Paying off a HELOC or 2nd mortgage through a cash-out refinance is a good way to save interest and/or lower your monthly payment. A cash-out refinance is an ideal choice for many consumers especially given the recent substantial home equity increase.
Here’s the breakdown on benefits of taking advantage of a cash-out refinance versus getting financing through a 2nd mortgage or HELOC:
Teaser Interest Rates or Adjustable Interest Rates: HELOC’s from your local bank or credit union typically have teaser rates and adjustable rates
Shorter Loan Terms: HELOC’s typically have an initial draw period followed by a repayment period where you can no longer draw on the loan
HELOC’s and 2nd mortgages may cause difficulties and/or prevent you from opening additional financial transactions on your property such as refinancing
HELOC’s and 2nd mortgages may cause issues when trying to sell your property
Lower Monthly Payment: combining a first mortgage and a junior lien typically lowers the overall monthly expenditure when compared to paying them separately
Lower & Fixed Interest Rate: many HELOC’s have higher rates, adjustable rates, or start out with a low teaser rates and convert to adjustable rates once the teaser period ends
One Monthly Payment: once we payoff your HELOC or 2nd mortgage, your loans will be consolidated into your mortgage loan so you don’t have to worry about making payments to another lender
What Will My Monthly Payment Be?
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No Credit Check
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