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Want to borrow home equity without refinancing? 3 options to consider this May
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TL;DR
- Record home equity levels present an opportunity for homeowners to borrow funds.
- Elevated interest rates are expected to persist, making refinancing a less attractive option.
- Home equity loans offer a fixed rate and competitive average interest rate of 6.96%, allowing homeowners to keep their existing mortgage.
- HELOCs provide a revolving line of credit with a slightly higher average rate of 7.11% and may offer interest-only payments during the draw period.
- Reverse mortgages are available for homeowners aged 62 and older, requiring no monthly repayments and only needing to be repaid upon sale or death of the homeowner.
- Each option allows homeowners to leverage equity without refinancing their existing mortgage and potentially losing a favorable rate.