Before tapping into your home equity you should know what your options are. Your options will also be determined by your situation. Let me explain...
1) If your current mortgage interest rate is higher than current mortgage rates, then it is probably best that you refinance to a larger loan amount (if your home is worth more than your current mortgage balance) and take cash out. Cash is available for you when you refinance in this situation because say your current mortgage is 300,000, and you take out a loan for 320,000 (because your house is worth that) you can take the 20,000 out in cash. In other words, refinance to a larger loan amount and pocket the difference in value. If you want quotes, fill out this form so get multiple no-obligation offers click Here:
2) Another option you can pursue is simple just a home equity loan. This is different from a refinance loan. With a home equity loan, you are taking an additional loan out so you have two loans or a "second mortgage." This is usually a good option if you have a low rate on your current mortgage. If you want quotes, fill out this form so get multiple no-obligation offers click Here and select "home equity" as the type of loan you want.
3) Your third option is something called a HELOC or home equity line of credit. Basically, with this option you only make payments if you use the available cash. The cash equity in your home is used as the revolving line of credit. The difference here than a credit card is that the rate is usually much lower and the interest is tax deductible. With a HELOC, you can take your cash as you need it or take a lump sump right away. This benefit is gained with a home equity loan too but with a HELOC it takes only 10 days usually to be processed. If you want quotes, fill out this form so get multiple no-obligation offers click Here and select "home equity" as the type of loan you want again.