HELOC vs cash out refinance vs second mortgage?

Depends on how much you need? With rates the way they are, I would lean toward HELOC without any other information.

HELOC would scare me as the are usually ARMs tied to the Prime Interest Rate. 2nd Mortgages are typically priced higher than 1st Mortgages and also entail another payment, which will reduce cash flow each month. Depending on your situation regarding current term length, interest rate, and balance, I would consider a cash out refi. There are plenty of options out there for a 15 year fixed, 20/10/5 ARM, and 30/10/5 ARM.

I wouldn't touch the current rate you have on it. My bank gave me a figure for a HELOC without an appraisal and an interest rate of ~4.5% fixed for 7 years. I wanted a little more so they did an appraisal which cost ~$500. The appraisal was higher than their initial estimate so they were able to loan me more money. No other costs involved.

We were buying a 1 acre lot on a lake here in TX and this was a way to finance 100% since the loan on the lot was only for 80%. They were both ~4.5%. It kept me from coming out of pocket immediately.

If you cash out refi, you will have a much higher rate on all of the loan and have to pay closing costs which can run a few thousand dollars.

I'm not familiar with second mortgage financing, but I assume it is similar to a first mortgage with a higher rate and also closing costs.

Also what about a home equity loan vs a HELOC?

I can do both, HELOC and cash out refinance. Many people get interest rate focused but many do not realize that if you are using the cash to pay off other debts, you can come out ahead. Credit card interest rate is HIGHER and will be getting higher with the FED rate change. I cannot give advice if HELOC or refinance is better. This market is very different than 6 months ago.

Reverse mortgage is geared towards those on a fixed income that take equity in their home to help them. You have to be over 65

email me at username @ gmail.com if you want me to give you more numbers for comparison

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I can do both, HELOC and cash out refinance. Many people get interest rate focused but many do not realize that if you are using the cash to pay off other debts, you can come out ahead. Credit card interest rate is HIGHER and will be getting higher with the FED rate change. I cannot give advice if HELOC or refinance is better. This market is very different than 6 months ago. Reverse mortgage is geared towards those on a fixed income that take equity in their home to help them. You have to be over 65 email me at username @ gmail.com if you want me to give you more numbers for comparison

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Not using cash to pay off other debts.

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The folks here will give you good advice and direction if you actually share what you need 50K for. It does actually make a big difference.

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Kid’s college and cars

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IberiaBank

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I have used them for HELOCs on my last 3 homes.. would recommend.

EFCU Financial offers up to 100% financing on HELOCs with no closing costs or appraisal fee.

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And what is a reverse mortgage? Same as HELOC?

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Not trying to be a dick, but if you don’t know that answer, you shouldn’t be doing this.

Have kids do student loans for college. Interest is deferred as long as they are enrolled, iirc. If they graduate, consider a heloc. Would not refinance just to take 50 grand out. If your cars are still running, hold off on anything new. Better yet, do the Dave Ramsey plan. Sounds like it’s tailor made for you. Good luck!