Refinance and cash out or get a 2nd Mortgage (HELOC)

Teresa Tims President of TDR Mortgage in Upland CA. What you should do when considering a Cash-out Refinance A Home Equity Line of Credit. (HELOC) in California.


1) Evaluate what your payment and cash out amount would be if you refinanced and got cash out VS. what the payment would be if you got a HELOC loan.

2) Look at the “cost” of the Refinance also. How much are you paying to access the cash that you are getting? Exclude the Taxes, Insurance, and overall impounds and interest per day. Look at the lender fees and title and escrow ONLY. This is the real cost.

3) Evaluate the “Term” of the 2nd Mortgage Heloc. Is it adjustable? Is it for a10, 15, 20, or 30-year term.

4) How long have you had your current loan? Is it worth Starting over with a whole new loan or better with a short term Heloc?

5) Are you the type of person that is ok with the risk of an adjustable rate mortgage or does a fixed rate home loan provide more security for you? Its Widely predicted Home Loan Rates will be on the rise in 2018.

That’s it, it’s pretty darn easy.

Additional Info; Traditional cash out home loans will only go to 80% Loan to Value. That means you need 20% equity to access any equity in your home. TDR Mortgage can go up to 89.99 % LTV in certain circumstances where alternative financing options can be used. I can help you look at all of these options with an open mind and provide an opinion based on a true analysis of what is in your best interest. Call me at 909.920.3500 to get started today.