How Home Equity Financing Works
Home equity can sometimes support additional financing. Understanding what equity represents—and the ways it may be accessed—helps homeowners compare their options.
What home equity is
Equity is broadly the difference between a property’s value and the financing secured against it. The amount available for new financing can be lower because lender requirements also apply.
There is more than one structure
Depending on the situation, accessing equity may involve refinancing the first mortgage or adding financing alongside it.
Match the financing to the purpose
Consider how much is actually needed, why the funds are being borrowed and how quickly you expect to repay them.
Compare the complete cost
Rate, fees, amortization, payment structure and the effect on existing mortgage terms all matter when comparing alternatives.
Ready to take the next step?
Conixi can connect you with a licensed mortgage professional to review your situation.