Anna Helhoski

That's not terribly far off the kind of rates we're seeing right now. Something else to consider also is that cash out refis generally have higher interest rates than if you were to just do, say, a rate and term refinance. Because it's that much larger of a loan for the mortgage lender, it's a little more risky. They're going to reflect that in the interest rate you're offered.

That's not terribly far off the kind of rates we're seeing right now. Something else to consider also is that cash out refis generally have higher interest rates than if you were to just do, say, a rate and term refinance. Because it's that much larger of a loan for the mortgage lender, it's a little more risky. They're going to reflect that in the interest rate you're offered.

So really, unless it's a low rate environment, cash out refi is probably not it.

So really, unless it's a low rate environment, cash out refi is probably not it.

So really, unless it's a low rate environment, cash out refi is probably not it.

HELOCs and home equity loans have some similarities, have some differences. One big similarity, though, that fits into what I was just talking about is that both of them are types of second mortgages. So it is a separate loan from your current mortgage. That means if there's anything you don't want to touch about your current mortgage, interest rate, term, whatever it is, you don't have to.

HELOCs and home equity loans have some similarities, have some differences. One big similarity, though, that fits into what I was just talking about is that both of them are types of second mortgages. So it is a separate loan from your current mortgage. That means if there's anything you don't want to touch about your current mortgage, interest rate, term, whatever it is, you don't have to.

HELOCs and home equity loans have some similarities, have some differences. One big similarity, though, that fits into what I was just talking about is that both of them are types of second mortgages. So it is a separate loan from your current mortgage. That means if there's anything you don't want to touch about your current mortgage, interest rate, term, whatever it is, you don't have to.

This is just a completely separate loan. That said, each option is pretty different. So home equity loans are pretty straightforward. You just borrow an amount. You get that amount as a lump sum at closing. That's the whole thing. It's got a fixed interest rate that you can pay over as much as 30 years. So you've got this monthly payment. You're just paying it.

This is just a completely separate loan. That said, each option is pretty different. So home equity loans are pretty straightforward. You just borrow an amount. You get that amount as a lump sum at closing. That's the whole thing. It's got a fixed interest rate that you can pay over as much as 30 years. So you've got this monthly payment. You're just paying it.

This is just a completely separate loan. That said, each option is pretty different. So home equity loans are pretty straightforward. You just borrow an amount. You get that amount as a lump sum at closing. That's the whole thing. It's got a fixed interest rate that you can pay over as much as 30 years. So you've got this monthly payment. You're just paying it.

It's more or less how most loans work, right? You borrow the money and then you pay it back. Where home equity loans get tricky is that relatively few lenders offer them relative to other home equity borrowing options. Thinking about the dozens of lenders that we review and research at NerdWallet, Cash-out refinance, I would say, is by far the most common.

It's more or less how most loans work, right? You borrow the money and then you pay it back. Where home equity loans get tricky is that relatively few lenders offer them relative to other home equity borrowing options. Thinking about the dozens of lenders that we review and research at NerdWallet, Cash-out refinance, I would say, is by far the most common.

It's more or less how most loans work, right? You borrow the money and then you pay it back. Where home equity loans get tricky is that relatively few lenders offer them relative to other home equity borrowing options. Thinking about the dozens of lenders that we review and research at NerdWallet, Cash-out refinance, I would say, is by far the most common.

Most lenders that are offering refi offer you a cash-out option. Keylock comes in second, and then home equity loan is like a distant third. So if there's interest in going down that path, it might take a little bit more research to find lenders that are actively offering home equity loans. So HELOCs are more common, but HELOCs are also kind of more complicated.

Most lenders that are offering refi offer you a cash-out option. Keylock comes in second, and then home equity loan is like a distant third. So if there's interest in going down that path, it might take a little bit more research to find lenders that are actively offering home equity loans. So HELOCs are more common, but HELOCs are also kind of more complicated.

Most lenders that are offering refi offer you a cash-out option. Keylock comes in second, and then home equity loan is like a distant third. So if there's interest in going down that path, it might take a little bit more research to find lenders that are actively offering home equity loans. So HELOCs are more common, but HELOCs are also kind of more complicated.

So with a home equity line of credit, it's a line of credit, right? So it's a little bit like a credit card in that you have your total dollar amount that you can borrow up to, but you don't have to borrow that dollar amount. You kind of borrow the money individually. as you need it to do the different things.

So with a home equity line of credit, it's a line of credit, right? So it's a little bit like a credit card in that you have your total dollar amount that you can borrow up to, but you don't have to borrow that dollar amount. You kind of borrow the money individually. as you need it to do the different things.

So with a home equity line of credit, it's a line of credit, right? So it's a little bit like a credit card in that you have your total dollar amount that you can borrow up to, but you don't have to borrow that dollar amount. You kind of borrow the money individually. as you need it to do the different things.