top of page
  • Writer's pictureealimon

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:

  1. Cash-Out Refinancing

  2. Home Equity Line of Credit

  3. 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.

40 views0 comments
bottom of page