CASH-OUT REFINANCE

Turn your home equity into cash when you need it.

You own rather than rent for a reason, and that value you're building in your home is there for you when you need it. There are a couple ways to use the equity you've built in your home to get cash quickly—a cash-out refinance and a home equity loan. With Discover Home Equity Loans, you can do either. Learn about both below.

THE BASICS

Cash-out refinance basics you might want to know.

A cash-out refinance

is a new loan you take against your home for more than you owe. You get the difference in cash, to spend on anything from paying off debt to covering unexpected expenses or major life events. Whatever makes sense for you.

BENEFITS & OPPORTUNITIES

Here are some ways a cash-out refinance may help.

Depending on where you are in life and what kinds of expenses you're looking to cover, there are many potential benefits that might lead you to consider a cash-out refinance.

Get a lower rate

Since the loan is secured by your home, you may be able to get a lower rate than unsecured loans like personal loans or credit cards.

Get access to cash

The equity you've built in your home is valuable, and you may be able to access it, and then use it when you need it.

Get a more stable rate

If you're refinancing from a variable to a fixed rate mortgage, you get a more stable rate moving forward.

Deduct all or part of your loan

There may be tax benefits to a refinance with your home as security (talk to your tax advisor to see if you qualify).

Usually, a traditional cash-out refinance has closing costs that can amount to hundreds or even thousands of dollars. However, you may be able to avoid these costs with a home equity loan. Discover Home Equity Loans offers a cash-out refinance option up to $300,000 with zero cash required at closing.

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Estimate your monthly payment on a home equity loan.

Cash out with home equity

Another option for accessing cash from your home is through a home equity loan. While a cash-out refinance replaces your current mortgage with new terms, a home equity loan can either refinance your current mortgage with new terms, or be an additional fixed rate loan. With a Discover Home Equity Loan, there are no origination fees, and there is no cash required at closing.

Learn more about using a home equity loan to get cash opens in a new window

What are the characteristics of a home equity loan from Discover?

1.Loans from $35,000-$300,000, terms from 10-30 years, with zero origination fees or cash required at closing.
2. A home equity loan is a way to access cash in which you can either refinance your current mortgage and get cash out, or take out a new loan. It may have a higher rate than other cash-out refinancing options, but some lenders, like Discover Home Equity Loans, has no origination fees or cash required at closing.
3.A cash-out refinance always replaces your current loan. It usually has a lower rate but may include closing costs that can be hundreds or thousands of dollars. However, with Discover Home Equity Loans, you can refinance up to $300,000 with no cash required at closing.
4.Both are secured by your home and possibly tax deductible (talk to your tax advisor).

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