Whatever your reasons are for wanting to take out equity, we will guide you to the best options…

There are several ways to take out equity including:

  • A secured line of credit
  • A full mortgage refinance
  • A blend and extend

We discuss each in more details below. The option you choose will depend on:

  • What you qualify for given your credit , income and the nature of the property you are refinancing
  • Any costs associated with the process vs. the benefits associated with switching to a lower mortgage rate

Example:

Your property is worth 700,000. The existing first mortgage = 300,000.

If you qualify for an equity take out, the lenders would be willing to lend you 80% of the appraised value of the property. That is 80% * 700,000 = $560,000

With your current mortgage at $300,000, you have 3 options of accessing the difference of $260,000

  1. Through a secured line of credit = $260,000
  2. Through increasing your current mortgage by $260,000 and refinancing the total new mortgage amount at a lower rate (full refinance )
  3. Through keeping your current mortgage intact and setting up a new parallel mortgage at a new rate for $260,000 (blend and extend )

We can help you assess the best equity take out option for your situation and save you thousands in the process.

Contact us for a complimentary consultation to explore your options.

Download our Article – Top Refinancing Tips

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