Apricot Real Estate Inc.

| DRE 01515385 | NMLS 350190

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Refinancing & Home Equity

A homeowner can refinance their current mortgage by replacing it with a new loan. Common reasons to refinance include securing a lower interest rate, adjusting the loan amount, or changing the loan term.

You’re not limited to refinancing with your current lender. By working with a broker, you can save time and effort comparing lenders and rates, as we do the shopping for you.

Types of Refinance Loans:

  1. Rate and Term Refinance – This option is for borrowers who want to modify the loan term (length of the loan) and/or adjust the interest rate, without changing the loan amount.

  2. Cash-out Refinance – In addition to modifying the rate and loan term, a cash-out refinance allows borrowers to increase their loan amount and receive cash at closing.
    Example: If the original loan balance is $350,000, the borrower can request a new loan for $375,000 and receive $25,000 in cash at closing.

  3. Cash-in Refinance – This option is ideal for homeowners looking to reduce their interest rate, change the loan term, and pay down part of the existing loan balance.

A home equity loan differs from a refinance in that it is an additional loan on the property, separate from the existing mortgage. The homeowner is borrowing against the property’s value, minus the balance of the current mortgage.

Types of Refinance Loans:

  1. Home Equity Line of Credit (HELOC) – This option allows borrowers to adjust the loan term (length of the loan) and interest rate, providing flexible access to credit as needed.

  2. Home Equity Loan – Also known as a second mortgage, a home equity loan is a fixed-term loan paid out in full at closing. Similar to a primary mortgage, the borrower makes regular monthly payments throughout the term of the loan.

 

2024 Apricot Real Estate, a mortgage broker, licensed by the CA Bureau of Real Estate, DRE #01515385, NMLS #350190. All rights reserved. Not all applicants will qualify. Rates, programs, and APRs are subject to change without prior notice. All LTVs represented are based on appraised value.