Understand the Opportunity
If you’re looking to access your home equity to pay for home renovations, finance a purchase such as a car, help with college education expenses or pay off debt, a cash-out refinance may be a good option, especially if you can take advantage of lower interest rates. With this option, you refinance for more than you owe on your mortgage and keep the cash difference.
Know the Costs
As with any loan, refinancing may include up-front expenses like closing costs and origination fees. When refinancing you may have the option of a “no-closing cost” loan that includes most of the fees you might usually pay at closing in exchange for a slightly higher interest rate on your new loan. You should weigh any costs against the savings of refinancing.
Consider Your Options
Another option for accessing the value of your home is a traditional home equity loan or line of credit. These types of loans are secured by a second mortgage, which means a separate monthly payment, but the terms and rates can be flexible. Talk with a PNC Mortgage loan officer to find the right solution for you.