What Is An Equity Take Out?
An equity take out refinance lets you refinance your mortgage for more than you owe and get cash back. To qualify, you need to have at least 20% of your home’s value as equity, meaning you can’t owe more than 80% of what your home is worth.
Difference Between Home Equity Loans And Equity Take Out Refinancing
An equity take out refinance is different from home equity loans and lines of credit. With a home equity loan, you add a new loan to your mortgage, while an equity take out refinance replaces your old mortgage with a new one. The refinance usually has lower interest rates but might have prepayment fees that a home equity loan doesn’t have.
