Everything you need to know about home loans in one place. Use our "frequently asked questions" section to learn everything about mortgages, refinancing, home equity lines of credit and more.
When you refinance a home, you replace your mortgage with a new home loan with different terms. Many people decide to refinance to get better terms -- and, while there are a variety of refinancing options, if you like your mortgage, you probably don’t need to refinance.
Read MoreUnlike typical cash out refinancing, a VA cash out loan actually allows you to take out cash with a 100% loan-to-value ratio (LTV). That means you can take out all of the equity in your home and convert it to cash. For example, if you have a $300,000 home and you owe $200,000 on it, you could get the entire remaining $100,000 in equity at closing (minus any closing costs.)
Read MoreA cash-out refinance allows you to take out a mortgage that’s larger than your current home loan-- and you get to keep the difference, in cash. For example, if you own a $400,000 house and owe $150,000 on the current mortgage, you have $250,000 in home equity. If you needed $40,000 to pay an expense like medical bills or a child’s college tuition, you could potentially take out a loan worth $290,000.
Read MoreIn theory, you can refinance as many times as you want. Some lenders will want to see that you’ll make the payments first, so they’ll require a short period between mortgages to establish that you are actually capable of paying (six months is a common seasoning period). Others will charge you a penalty for paying your existing mortgage off before it was due.
Read MoreWhen you’re considering your first refinance mortgage, you’re full of questions. How much will this cost me? Is it really the right move? What even happens to my equity during this transaction? The good news is that it probably won’t cost as much as you think, but the equity in your home is affected by the type of refinance mortgage you choose.
Read MoreBuying your house was definitely the right choice, but now that you’ve been paying on your loan a little while, you’re starting to wonder if you should take advantage of some of the mortgage rates that are being offered to homeowners willing to refinance. After all, you, too, would enjoy a lower monthly payment and some cash in your pocket. But there has to be some sort of catch, right?
Read MoreA home equity loan can be a source of funding for your next home. Although you are unlikely to be able to buy a home outright with a home equity loan, you may be able to put a substantial down payment on a second home.
Read MoreA cash out refinance uses your home equity to issue a new loan to replace the old one and give you a cash payout. Say your home is valued at $400,000 and your mortgage stands at $250,000 which means that your home equity is $150,000 ($400,000-$250,000). Using your home equity as collateral you can take out a new loan of $320,000, which will cover the $250,000 mortgage and get a cash payment of $70,000 ($320,000-$250,000).
Read MoreThere are several ways you can access your home equity such as selling your home, doing a cash out refinance, taking out a home equity loan, or opening a home equity line of credit. Turn the equity in your home into a source of cash to use as you see fit.
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