|
Make adjustments to the loan you already have by refinancing your loan at a better rate. There are two kinds of refinance loans: Rate/Term and Cash Out. Rate/Term doesn't add any new debt to the current mortgage in terms of consolidating credit cards or an auto loan, or taking cash out for home improvements. For those, select Cash Out. Rate/Term is for more favorable pricing. With both types of refinance loans, the equity you have in your home is used as collateral.
Buy a new home and pledge the equity that you begin to build in it as collateral for the loan. Depending on your credit and down payment, many loan options may be available for a new home purchase.
Add or modify a second mortgage behind your original first mortgage. This 2nd mortgage can be either a fixed or adjustable equity loan as with your 1st mortgage, or it can be a line of credit similar to a credit card. Use this loan for home improvements, with additional cash out as an option.
Bring your liabilities together for one manageable payment under a debt consolidation loan. Usually treated as a second mortgage, this can be either a fixed or adjustable equity loan as with your first mortgage, or it can be a line of credit similar to a credit card. In addition to simplifying your payments, you can use this loan for home improvements, with additional cash out if desired. |
