Turn Home Equity Into Investment Property Success

How to Access Home Equity

There are several ways to tap into your home equity. The most common methods include a Home Equity Line of Credit (HELOC), a home equity loan, or cash-out refinancing. Each option has its advantages and disadvantages:

• HELOC: This acts like a credit card, allowing you to borrow against your home equity up to a certain limit. Interest rates are typically variable, and you only pay interest on the amount you draw.
• Home Equity Loan: Provides a lump sum at a fixed interest rate, making it easier to budget your repayments. It's ideal for those who prefer predictable payments.
• Cash-Out Refinance: Replaces your existing mortgage with a new, larger one, giving you the difference in cash. This option can be beneficial if current interest rates are lower than your original mortgage rate.