| Cash out refinancing and home equity financing can be | | | | the mortgage balance you have and the estimated |
| used for utilizing your home's equity to get | | | | market value of your home. |
| tax-deductible borrowing power for large expenses | | | | 3. You have the ability to receive cash and spread the |
| such as college tuition or home improvements and is | | | | payments you make over a longer period of time. With |
| an option that many homeowners choose. There are | | | | home equity financing a home equity loan can give you |
| some differences between a home equity loan and | | | | the ability of having a shorter term to help to build your |
| refinancing with cash out. Both cash out refinancing | | | | equity quicker because you can pay the loan off in a |
| and home equity loans are tax deductible but the | | | | shorter period of time or reduced monthly payments |
| similarities end there. | | | | by spreading the costs over a longer period of time. |
| With cash out refinancing: | | | | 4. You can get lower interest rates than with home |
| | | | equity financing. With home equity financing you have |
| 1. You receive one loan and one loan payment. With | | | | the ability to borrow more money. With a line of credit |
| home equity financing you have the choice between | | | | the interest is only paid on the money that you actually |
| receiving one lump sum or a revolving line of credit. | | | | use. You can have access to the money whenever |
| 2. Your mortgage that is in place is refinanced for a | | | | you want it without having to reapply. |
| higher overall amount using some of the equity that | | | | Make sure to shop around and compare each feature |
| has been accumulated in your home. With home equity | | | | to see if a cash out refinance or home equity finance |
| financing you will be able to borrow all or just a part of | | | | is right for your specific situation. |
| your home equity. This will be the difference between | | | | |