Don’t want to refinance? Here are 3 other ways to get equity from your home

Home ownership is one of the biggest benefits Equity you build over time. Not only is equity good for your overall finances, it’s a great resource for accessing cash when you need it.

Generally, a Cash-out refinancing This is a common choice to do. This allows you to refinance your mortgage for more than you owe and take the difference as cash. But if you bought your home when rates were very low, you might be wary of refinancing Today’s Market And lose that great interest rate.

But that doesn’t mean your equity isn’t accessible. Home Equity Lines of Credit (HELOCs), Home equity loan And reverse mortgage All options that homeowners can use to tap into equity without affecting their current mortgage rate. They offer lower rates than many other borrowing options today and can help you access the cash you need for home improvements, debt consolidation, emergencies and more.

Explore your home equity options here to see the low rates you may qualify for now.

3 Ways to Use Home Equity Without Refinancing

If refinancing isn’t the right choice for you right now, you can still take advantage of the value you’ve built up in your home using these methods:

HELOC

A Home Equity Line of Credit (HELOC) May be a good choice if you’re not sure how you want to use the money or you want to access it at different points over time. When you are approved for a HELOC based on your Current home equity and information your applicationYou get access to a comprehensive line of credit Draw period (usually five to 10 years).

You can use the line of credit however you want and borrow as much as you need during this period. Once the repayment period begins, which can range from 20 to 30 years, you will pay back the borrowed amount in full and with interest.

HELOCs carry variable interest rates, so it will fluctuate over time. However, you will still usually get one Good APR With a HELOC than you would with a personal loan or credit card, since the line of credit is secured by the value of your home.

Learn more about the home equity loan options you may qualify for today!

Home equity loan

A home equity loan is a standard lump sum loan secured by the value of your home. If you have a large, one-time payment to finance, this may be a good option for you.

Based on your application and existing home equity, you will receive the loan in full upon approval and repay your balance with interest in fixed monthly installments over time. Carry home equity loans Fixed interest rate, which will not change throughout the life of your loan. If rates drop significantly during your repayment period, you may have options Refinance your loan Under certain conditions.

You can use your home equity loan money in any way you like However, with both Home equity loans and HELOCsYour interest payments may be duty free If you use them to qualify for home improvements.

reverse mortgage

If you’re a senior homeowner, you may have an additional option to tap into your home equity. reverse mortgage Available to homeowners age 62 and older who have paid off all or most of their existing mortgage.

You can use a reverse mortgage to access your home equity without making any monthly payments. Instead, you’ll receive money in a lump sum or monthly installments and accrue interest and fees over time. When you don’t have to pay back Reverse mortgage As long as you live in the home, it must be paid back if you move or die — usually by selling the home.

If you qualify and plan to stay in your home for a long time, this can be an affordable way to access the equity you’ve built up.

View your mortgage options here now.

Bottom line

Homeowners who already have very low mortgage interest rates may be hesitant to use refinancing as a method of accessing home equity. But that doesn’t mean they can’t still take advantage High home values. depends on How much equity Depending on what you have, how you want to use the money, and the terms you qualify for, a home equity loan, HELOC or reverse mortgage can be a great way to access cash now at relatively low rates.

Explore all the home equity options you may qualify for right here!