To put it nicely, 2020 hasn’t been the best. But one good thing to come out of this year is the historically low mortgage rates. Here are four ways you can use a home’s equity to work by refinancing.
1. Lower your monthly payment.
You could save hundreds or even thousands over the life of your loan by refinancing with a lower rate.
2. Add value to your home.
Whether you need an outdoor upgrade or a full kitchen renovation, a cash-out refinance allows you to use your home’s equity to pay for home improvements.
3. Consolidate high-interest debt.
If you have high-interest debt like credits cards or student loans, a cash-out refinance allows you to use your home’s equity to consolidate multiple loans into one low-interest loan — potentially saving you hundreds of dollars every month.
4. Eliminate your mortgage insurance.
If you have private mortgage insurance (PMI), a refinance could help you lower monthly cost or eliminate the need for it completely.