Cash-out Refinance or Home Equity Loan
If you are a homeowner, you may be able to use the equity in your home to help finance major expenses, like remodeling or renovating your home.
This is achieved through a home equity loan, which uses your primary residence as collateral.
You can use the equity in your property to consolidate debt. This may allow you to lower the amount you're paying on your total monthly bills, because the interest rate on your mortgage could be lower than the rate on other types of bank loans.
Achieving tax benefits
Another reason to consider taking cash out of the equity in your home is that your mortgage interest may be tax-deductible. Consult a tax advisor regarding the deductibility of interest.
Making a big purchase
You may choose to use cash-out refinancing for nonrecurring expenses, like buying a car, paying for a wedding or financing an education—purchases that might otherwise require you to borrow funds at a higher, non tax-deductible interest rate.
Consider all your options
Your home is an important part of your total net worth; make sure to consider all of your options carefully before deciding to take cash out of your home’s equity. A TDECU Mortgage Advisor is available to answer questions, and to help you determine whether a cash-out option may help you with your long-term financial goals.Contact a Mortgage Advisor