Home Equity Line Adds New Option to Refinancing SPONSORSHIP
If you're looking to refinance your mortgage but you also need some extra cash, there may be a few options out there you haven't considered. Today's re-fi rates are low, but to get the best deal overall, your best bet may be to refinance your principal loan at the lowest rate you can find and then to apply for a home equity line for the cash.
That way, with today's low home equity rates, you'll get the best interest rates for both portions of your financing.
The other main option is a cash-out refinance, in which the borrower takes additional cash above the loan amount. But that usually means an additional 0.5 percent or more in interest, which can add up to thousands of dollars over the course of a 30-year loan. Instead, simply refinance the balance of your mortgage, and then apply for a home equity line for the rest.