We may not be comparing real apples and oranges, but we’re coming pretty close in the home financing industry. And if you’re at all interested in using your home’s equity to access cash, then this comparison is for you.
As we discussed in our last email, there are two common ways to get cash from your home—a Home Equity Line of Credit (HELOC) or a cash-out refinance.
In the current environment, many people want to keep the great interest rate they already have on their home loan, so they automatically choose a HELOC over a refinance. But wait—there’s a big difference that can make the benefits hard to compare at a glance. HELOCs have adjustable interest rates, whereas most home loans are fixed.
Take a look.
If you’re interested in exploring your options more or you have questions about home financing, please reach out. I’ll be happy to help.
The Federal Housing Administration (FHA) has just raised its loan limit by 18% to a maximum amount of $420,680 in most areas. In certain high cost areas, it’s $970,800. Limits will take effect in 2022.
If you or your clients have any questions about FHA programs or limits in our area, please reach out. I’ll be glad to help!
Today’s rates
New Home Purchase
Conforming Interest rate
30-yr fixed 3.200%
Rates are not static, they often change throughout the day.
If another lender offers a lower rate, there's a buy-down involved.
Often not mentioned when quoting the lower rate
Actual rates vary based on Loan Amount, Middle Credit Score, DTI, Term
Today’s rates based on a purchase 740 middle score, conforming loan, detached, primary residence, non-self-employed, detached, primary home
NMLS # 863501
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