Taking out equity in your Property?

Question

How many different ways are there to take out the equity in your property? And what is the best way to do so?

Paul De Luca · Answer

@Matt Sora

Sell, HELOC, home equity loan, refinance.

The best way will depend on what your plan on using the money for.

Chris Davidson · Answer

@Matt Sora all great answers here and most likely the best answers. You can also sell it as a lease option with the premium equal to the amount of equity if it is a smaller amount, or sell it with subject to or owner carry and the down be what you need out of it or your equity to limit taxes.

The best way to do so is the way that works best for your situation and goals.

Erik Estrada · Answer

You can do a HELOC, HELOAN, and a Cash-out refinance. If you are looking to buy another property, doing a cash out refinance might make more sense since you will have a fixed rate.

Zach Wain · Answer

@Matt Sora As mentioned above, find a lender you would like to work with to dive into the details.  Your main two options are a

1) Home Equity Line of Credit - HELOC - 1 variable rate 2nd mortgage on your home.  If you need a smaller amount of cash out these can be a good fit.  It comes with a higher rate than 1st mortgage loans...

2) Cash out refinance - this is where you get 1 new mortgage that pays off your current mortgage and gets you additional cash out.  If you owe $150,000 and want $100,000 in cash out, you get a new loan for $250,000 as an example.  These type of refinances are usually best if you need a larger amount of cash out.

Everyone's scenario is different so there is not 1 standard answer as to which is better for you.  Reach out if you have any questions, we are licensed in Florida and happy to help.

Best,

Paul De Luca · Answer

@Matt Sora

Google is your friend here. Or talk to a lender.

Matt Sora · Answer

What is the difference between a HELOCK, Home Equity loan, and a Cash out Refinance HELOC, home equity loan, refinance. HELOC, home equity loan, refinance. HELOC, home equity loan, refinance.

Taking out equity in your Property?

Most Popular Reply