: Replaces your existing mortgage with a new, larger loan, allowing you to pocket the difference in cash. This is often preferred if current market interest rates are lower than your existing mortgage rate. Advantages
: A revolving credit line that functions similarly to a credit card. You can borrow, repay, and borrow again during an initial "draw period" (often 10 years), usually paying variable interest rates. using home equity to buy a second home
: Provides a lump sum of cash at a fixed interest rate. It acts as a second mortgage with predictable monthly payments over a set term, typically between 5 and 30 years. : Replaces your existing mortgage with a new,
: Having immediate access to cash allows you to make a larger down payment or even buy a property outright, making your offer more attractive to sellers. You can borrow, repay, and borrow again during
: Because these loans are secured by your home, they generally offer lower interest rates than unsecured personal loans or credit cards.
