What is the Difference Between a HELOC and Refinancing?
Refinancing your mortgage and a home equity line of credit (HELOC) both give you access to the equity in your home as cash, but they work differently.
Refinancing allows you to borrow more as part of your new mortgage, which gives you the cash up-front. A HELOC, on the other hand, is a facility that allows you to access the cash at a later date.
Refinancing your mortgage to access equity might be the best option if you need a lot of money in the short term, but you’ll be paying interest on it right away. A home equity line of credit is better if you don’t need the money immediately, because you won’t have to pay interest until you actually use it.
However, HELOC rates tend to be higher than what you’d pay by refinancing.
Learn more about a Home Equity Line of Credit
If you’re thinking of accessing the equity in your home, or are curious about how much equity you currently have, reach out today to get the conversation started. My team and I can assess your personal situation at no cost to you and help you understand what your options are. If you’re ready to set up a HELOC or second mortgage then I can also find you the best deals and guide you through the process.
How can Ahmad, mortgage specialist at AskAhmad.ca and the Total Mortgage Source 360 Team help you?
Ahmad and his team are industry experts on mortgages. They offer excellent customer service and pride themselves on their ability to help you find the right mortgage product for your needs.
We can offer you some of the most competitive interest rates and mortgage products available because we have access to Canada’s leading lenders, including banks, mortgage firms, trust companies and private lenders.
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