Or you might use it to pay off a home equity line of credit (HELOC) or home equity loan. Your equity is the amount by which the current market value of your home exceeds your mortgage balance.

To enjoy the benefits of a debt consolidation loan, you should not carry new credit card or high interest rate debt. A cash-out or debt consolidation refinance increases your mortgage debt and reduces the equity you may have in your home. Your monthly mortgage payments may be higher.

. look at how widely the interest rates vary in this FICO/rate chart. If you think you’re on the border of approval for a home equity loan or HELOC, there is another option: a cash-out refinance..

Current Mortgage Rates Citibank rising mortgage rates are raining on the housing industry’s recovery and disrupting the plans of individual. The upturn in rates is also dampening prospects for homeowners who want to sell their.

Homeowners also pay interest for the life of the loan, as they would with their original mortgage. Advantages of a cash-out refinance. You can access your home’s equity for home improvements, debt consolidation or other financial goals. Interest rates for first mortgages are typically lower than for HELOCs or home equity loans.

Cash-out refinance pays off your existing first mortgage. This results in a new mortgage loan which may have different terms than your original loan (meaning you may have a different type of loan and/or a different interest rate as well as a longer or shorter time period for paying off your loan).

Current Fha Rates 30 Year Fixed January 17, 2017 14:00 ET | Source: Zillow Group, Inc. SEATTLE, Jan. 17, 2017 (GLOBE NEWSWIRE) — The 30-year fixed mortgage rate on Zillow® Mortgages is currently 3.89 percent, up 1 basis point from.

Here are factors to help you decide among a home equity loan, HELOC or cash-out refinance if you’re looking to take your home equity. Knowing the differences among equity loans will help you make.

Cash-out refi. A cash-out refi is a refinance of any of your existing mortgage loans. It essentially allows you to obtain a new loan to pay off the current one and also take out equity (the difference between how much your property is worth and how much you owe on the mortgage) in the form of a one-time lump sum cash payment.

With a traditional home equity loan, you take on a second mortgage at a fixed rate with up to 30 years for repayment. One thing to consider is the fees associated with each loan. Cash-out refinancing may have fees and closing costs since you are changing your loan. Discover home equity loans offers both home equity loan and cash-out refinance.