You can also open a home equity line of credit (HELOC) in order to secure a lower rate. A HELOC is typically taken out in addition to your existing mortgage, which is why it’s often considered a second mortgage. This enables you to access the loaned funds at any time you choose, instead of all at once.
You should consider a HELOC if you need money for other items, such as credit card payments or college. There are caps on rate increases. One of the advantages is the financial flexibility; you can borrow during the “draw period,” which is usually 5-15 years. The repayment period is typically about 10-20 years.
All HELOCs are variable/adjustable rate loans. Other benefits include:
Low closing costs
Low interest rates
Interest that only builds on what has been drawn from the line of credit
There’s a lot to consider when it comes to refinancing. Most importantly, you should understand that it may not be an ideal option for everyone.
Blue Water Mortgage has helped countless homeowners refinance their mortgages and achieve long-term financial benefits. Contact us via the form on this page and we will help you determine if it’s the right step for you. Our loan officers will assess your information, crunch your numbers and get back to you shortly!
Frequently Asked Questions About Mortgage Refinancing