Some ideas for how to get that money in a rising interest rate environment …
Mortgage rates were so low for so long that many people who wanted to take some cash from their equity would just refinance into a new mortgage.
That was a good idea and it worked for a long time while rates were going down. It often turned out to be a classic win-win with borrowers getting a lower rate and a lower monthly payment for the same mortgage term.
As rates landed at historic lows – where they stayed for quite a while! – many borrowers found that they couldn’t score a lower rate but a refinance still let them extend their term and take some money out of their equity. For the same rate they had or close to it. It worked.
But mortgage rates are moving up and no one wants to give up their first mortgage with a fantastic low rate that’s guaranteed and locked in until 2047. They’re just not going to mess with that.
So what’s the best way to access your equity now if you need money for home improvements, college, a new car, a downpayment on a second home or some other significant-to-you item?
A lot will depend on your particular situation but many Canton Co-operative borrowers are finding that a home equity line of credit does the trick. Home equity line rates are still low and – at Canton Co-operative – our unique Carve Out loan gives you total flexibility both in how you borrow and pay back the loan. Borrowers love the Carve Out!
(Stan Taylor NMLS#774747, Bela Vasconcelos NMLS #582849, Canton Co-operative Bank NMLS #721437)
Canton Co-operative Bank is located in downtown Canton at 671 Washington Street, Canton, MA 02021. The main phone number is 781-828-8811.