In this Guide: ; Home Equity Loan vs. Cash-Out Refinance ; Similarities Between Home Equity Loans and Cash-Out Refinances ; Differences Between Home Equity Loans and Cash-Out Refinances
Feature, Home Equity Line of Credit (HELOC), Home Equity Loan ; How It Works, A revolving line of credit based on the equity in your home, A one-time loan based on the equity in your home ; Money Received, Draw on funds as needed, One upfront lump sum ; Interest Rate, Variable, Fixed ; Loan Term, Draw periods typically run for 5-10 years, with 10-20 years to repay, Typically 5-15 years ; Repayment, Interest-only payments during draw period, followed by interest and principal payments, Principal and interest payments ; Who Is It Best For, Borrowers who want ongoing access to funds and don’t know how much they need, Borrowers who know how much they need and want fixed monthly payments
In this Guide: Can you Refinance? · Pros and Cons · Costs of Refinancing · Home Equity Loan Refinancing Options · How to Refinance · Process · Alternatives · The Bottom Line · FAQs
In this Guide: Ways To Refinance a HELOC · Should I Refinance My HELOC? · How To Refinance a HELOC · What Is a HELOC? · Alternatives to Refinancing a HELOC · The Bottom Line · FAQs
Your home’s current value · How much you still owe on your mortgage · How much you’d like to borrow · The loan term you’d like (usually 10 to 30 years)
As home values skyrocketed in the last few years, homeowners have enjoyed a major perk: more equity. Equity is your current home value minus what you owe on your mortgage. For many homeowners, their equity has seen a significant jump. That’s good news for homeowners hoping to refinance. Since it’s very hard to refi without equity (read: impossible with most loan programs), people will need to leverage the part of their home that they own outright to get into a new home loan. That refinance means paying closing costs, but a refi can benefit ...
Why refi with SoFi? ; Turn your home equity into cash. Consolidate high-interest debt or pay for home renovations with cash-out refinancing. ; Exclusive member benefits. Save $500 on processing fees^—plus, gain access to events, expert advice, and a supportive community. ; Save even more. You could save thousands with a lower rate when you use cash-out refinancing to remodel your home or pay off high-interest debt.
Zip code · Enter your ZIP code for the most accurate results. Refinance rates can vary from state to state. ; Property value · This helps calculate the loan‑to‑value ratio (LTV) for your loan, which helps determine your interest rate. ; Current balance · This amount is also used to calculate your LTV. LTV requirements vary depending on the loan type.
Key takeaways ; You’ll generally need at least a 620 credit score to refinance your mortgage. ; You can still refinance with bad credit, but your options will be limited. ; Credit score requirements vary between rate-and-term and cash-out refinance loans.
Original Mortgage Term · New Mortgage Term · Original Interest Rate · Original Mortgage Amount · Cash-out Amount · Original Date · Closing Costs