Cash-out refinance
Replace the current mortgage and receive eligible equity proceeds.
Compare equity options
Replace the current mortgage and receive eligible equity proceeds.
Add a typically fixed second-lien amount and payment.
Use a revolving line whose rate and payment may change.
Use the same cash need and expected holding period. Compare the new first-mortgage rate, second-lien rate, closing costs, payment, total interest and effect on future flexibility.
A low existing first-mortgage rate can make replacing the entire balance expensive. A variable-rate line can preserve flexibility but introduce payment uncertainty.
Review the current mortgage, property and cash goal together.