Terms of Loan
Cash-out refinances loans are a form of loan refinancing where the initial loan is paid off and a new loan is established. The new loan is larger than the current loan amount, so the home equity converts into a cash payout.
Home equity loans are considered a second loan; the first loan is the one you took to purchase the property. This loan is given against your home’s value subtracting any outstanding loans on the property.
How Funds are Received
Cash-out refinances to pay off your current mortgage, including closing costs and any prepaid items. Any remaining funds are all yours; use them as you wish.
Home equity loans let you take out money from your existing credit line and continue making monthly payments that include principal and interest.
Interest Rates
Cash-out refinance is available through either a fixed-rate mortgage or an adjustable-rate mortgage.
Home equity loans have a flexible interest rate that increases or decreases when the index increases or decreases.
Closing Costs
Cash-out refinances closing prices similar to your original mortgage. Home Equity Loans usually have no closing costs.
If you are looking to borrow an excellent financial option for your home, Contact Texas Premier today!
