Don’t Refinance Until You Read This Mortgage Pro’s Advice

Core Insights - Homeowners are facing challenges with high interest rates, prompting some to consider tapping into home equity as an alternative to refinancing [1][2] - A cash-out refinance may be the best option for homeowners with significant equity, but it is crucial to have a clear purpose for the funds [2][3] - The choice between a cash-out refinance and a home equity loan depends on the current mortgage rate and the intended use of the funds [4] Home Equity Access - Home equity is determined by the current market value of the home minus the outstanding mortgage balance, which is a key factor in refinancing decisions [6] - Lender requirements, such as loan-to-value ratio (LTV), influence how much equity can be accessed, with a common guideline to keep combined LTV below 80% to avoid private mortgage insurance (PMI) [7]