As we are all witnessing, home values have increased exponentially in the last few years. If you’re currently not in the seller market, you’re likely sitting on a lot of equity. If you need to tap into that equity, you can do so in a couple of ways. You can either do a full refinance or take out a second mortgage. The best option depends on your property debt, interest rate, payment, and loan amount.

When considering a full refinance, the rule of thumb is to calculate your new payment by taking the new loan amount, including the cash-out, at the new interest rate and setting the payment aside.

Then, consider obtaining a second mortgage to determine the necessary funds and calculate that payment. Following this step, combine your existing house payment with the newly acquired 2nd mortgage payment and compare the overall amount to the complete refinance payment. Whichever is less is your best option.

Sounds complicated, we know! This is why Indigo Mortgage is here to help you. We offer a complimentary evaluation that requires only your current interest rate and payment information—no credit checks. We pride ourselves on being a reputable local lender that values the trust of our clients. Our goal is to guide you without pressuring you in any particular direction. You can rely on Indigo Mortgage to assist you every step of the way.