Put the equity you have built in your Florida home to work for renovations, debt consolidation, education or other major expenses. Tell us what you need and we will compare a home equity loan, a HELOC and a cash-out refinance for you.
Home equity is the difference between what your home is worth and what you owe on it. Because the loan is secured by your home, home equity financing usually carries lower rates than credit cards or personal loans. The right option depends on how much you need, whether you need it all at once and how your current mortgage rate compares with today's rates.
| Home equity loan | HELOC | Cash-out refinance | |
|---|---|---|---|
| How you receive funds | One lump sum | Draw as needed during the draw period | One lump sum at closing |
| Rate type | Usually fixed | Usually variable | Fixed or adjustable |
| Your current mortgage | Stays in place | Stays in place | Replaced by the new loan |
| Best when | You need a set amount for a one-time cost | Costs arrive over time, such as a renovation | Today's rates are close to or below your current rate |
Lenders look at your combined loan-to-value ratio, which is everything you owe on the home divided by its appraised value. Many programs allow combined borrowing of up to 80% to 90% of the home value, depending on the loan type, your credit and whether the home is your primary residence. For example, on a $400,000 home with a $220,000 mortgage, an 80% limit leaves room for up to $100,000 of additional borrowing.
Want to see the payment first? Try our mortgage calculators, or compare with a rate and term refinance.
A home equity loan suits a single, known expense because you get a lump sum at a fixed rate. A HELOC suits expenses spread over time because you only pay interest on what you draw, but the rate is usually variable.
When today's rates are similar to or lower than your current mortgage rate, a cash-out refinance can give you one loan and one payment. If your current rate is much lower than today's rates, keeping it and adding a home equity loan or HELOC is often cheaper overall.
Most home equity loans, HELOCs and cash-out refinances require a property valuation. Some lenders use automated valuations for smaller amounts, while larger loans typically need a full appraisal.
Timelines vary by product and lender, but many home equity loans and HELOCs fund in a few weeks. For a primary residence, federal law generally adds a three-business-day right to cancel after signing before funds are released.
Loan programs, rates and terms are subject to credit approval, property eligibility and change without notice. This page is general information, not a commitment to lend. Lending Warehouses of America, NMLS ID 332663.
