“My home has equity, and I need cash.”
Can I get cash from my home’s equity?
Often, yes. A cash-out refinance or a home equity line can turn some of your equity into cash while you keep living in the home. Each one works differently and has its own costs. A loan officer can show you which fits, and what it does to your payment.
Quick answers
Remodel coming up?
Your equity may pay for it.
Like your current rate?
A home equity line can leave your first mortgage alone.
What you'll need
- Your current mortgage statement
- Pay stubs or other proof of income
- Your homeowners insurance details
How does it go, start to finish?
How does a cash-out refinance work?
You replace your mortgage with a bigger one. The new loan pays off the old one, and you get the difference in cash at closing.
It can make sense when the new rate is close to the one you have, or when you’d rather keep one payment.
How does a home equity line work?
It’s a second loan you draw from when you need it. Your first mortgage stays as it is.
It can make sense when you like your current rate. The line’s rate usually moves with the market.
How much cash can I get?
It depends on your home’s value, what you owe and your credit. Lenders leave some equity in the home, so you can’t borrow all of it. Your loan officer works out the number with you.
What happens to my payment?
A cash-out refinance gives you a new payment on a bigger loan. A home equity line adds a second payment. Your loan officer shows you both before you decide.
What do people use the cash for?
Common reasons are a remodel or paying off debt with a higher rate. Whatever the reason, you pay it back with interest, so make sure the plan is worth it.
What should I think about first?
Your home secures the loan. If you can’t make the payments, you could lose it. Talk through the new payment with your loan officer before you decide.
Questions people ask
Cash-out refinance or a home equity line?
A cash-out refinance replaces your loan. A home equity line is a second loan that keeps your first mortgage in place. We compare both.
Does a home equity line replace my mortgage?
No. A home equity line is a second loan. Your first mortgage stays as it is.
Can I use the cash for anything?
Mostly, yes. Your loan officer tells you if the loan has any limits.
Is the cash taxable?
No. It’s a loan, not income. Ask a tax advisor about deducting the interest.
Does a cash-out refinance change my rate?
Yes. The whole loan gets the new rate. If your current rate is low, a home equity line may cost less overall. Your loan officer compares both.
How long does it take?
Often about a month from application to the cash. A home equity line can be faster. Your loan officer gives you the dates.
Do I need an appraisal?
Usually, yes. The lender needs your home’s value to work out how much cash you can take.
Does Home First Financial offer cash-out refinancing in California?
Yes. Home First Financial arranges cash-out refinance loans and home equity lines across California. Subject to qualification.
Talk to a loan officer
Call or email a licensed loan officer.
The application takes about 15 minutes, on the secure site we use. Do what you can, and your loan officer calls to fill in the rest.
Prefer to meet in person? Our main office is in Tustin, by appointment.
The fine print
Subject to qualification. Closing costs apply. Borrowing against your home increases the debt it secures. Not a commitment to lend.
Also called: a cash-out refinance or a home equity line of credit (HELOC).
Home First Financial is not affiliated with HUD, FHA, VA, USDA, CalHFA or any government agency.
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