Looking to make some home improvements? You may be able to tap into the equity you already have in your home to pay for them.
You have two options.
- A home equity line of credit (HELOC)
This works almost like a credit card. You withdraw funds as you need them and pay them back over time. You pay interest on the money you borrow, but you generally don’t have to pay closing costs if you keep the account open for a certain number of years. And your funds are available quickly—often in just a few weeks.
- Cash-out refinancing
With this, you refinance your existing mortgage to a higher loan amount—then cash out the difference. You’ll still have the ease of just one monthly mortgage payment. Thereare closing costs, but you may be able to roll them into the loan.1 If interest rates have gone down since you bought your house, you may even lower your interest rate.
Which option is right for me?
That depends on several things—like how quickly you need the funds and if you want to access funds over time or in one lump sum.
Both options tap into the equity you have in your home. So interest rates are typically lower than other borrowing options. And some of the cash you get out can be used for other purposes—like consolidating high-interest debt or other large purchases.
Make your home improvement dreams a reality.
See how a HELOC or cash-out refinance can help you achieve your dreams. Speak with a Truist representative or apply directly online.