Should You Tap Your Home Equity For Cash?
According to Federal Reserve data, rising home prices have created record levels of equity for U.S. homeowners, reaching an estimated $15 trillion. #REFINANCE
Strategies for unlocking your equity
There are basically three main strategies for unlocking your equity:
Cash-Out Refinancing
Home Equity Line of Credit
Home Equity Loan
Cash-out refi’s are popular. According to Consumer Reports, more than 80 percent of borrowers who refinanced in the third quarter of 2018 chose the cash-out option.
You also need to consider new tax rules. Now, you can only get a tax deduction if the refi money is used for home repair or improvements. To take the write-off, you must itemize. (Always consult with a tax professional for more information.)
If you simply want to lower your interest rate or reduce the term of your loan, a standard mortgage refinance should be considered. Contact the experts at Vanmar Lending for more information.