What is a HELOAN?
In addition to cash-out refinances and HELOCs, there is actually a third way you can tap into your home's equity for cash: HELOANs. This acronym stands for home equity loan, and like a HELOC, it won't replace your mortgage.
That can a huge benefit, especially if you nabbed one of the really low rates from 2020 or 2021. In addition, HELOANs are also a good option if you need a single lump sum of money, like to pay off high interest credit card debt.
Some other benefits of HELOANs include a fixed interest rate, which means fixed monthly payments, lower upfront closing costs than a cash-out refi, and usually no limits on how you use the money. And the process to get a HELOAN is actually pretty similar to applying for a refinance, usually taking anywhere from a couple of weeks up to a couple of months. This video is not applicable to borrowers in the State of Washington.
This video is not intended for residents or homeowners in the states of NY or MA.
