Can You Refinance A HELOC?

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We get it. Life happens and financial goals change. If you’ve been using a home equity line of credit to help tackle your fiscal plans, you may have wondered if HELOC refinancing is an option and, if so, does it make sense for you and your situation?

Good news! HELOC modifications are possible. In fact, refinancing your home equity line of credit can offer solutions for a variety of financial scenarios. Here are a few opportunities to consider…

Ways To Refinance A HELOC

Modifying Your Current HELOC

Do changes in your financial situation no longer align with the goals you had for your HELOC? Are the terms of your HELOC not providing you the right flexibility that attracted you to an equity line in the first place? In cases like these, modifying your HELOC via refinance could restore the needed flexibility for your plans.

Open A New HELOC

Has an unforeseen expense come up where using the equity in your home could provide relief? Maybe recent changes in the economy could provide you with a lower interest rate. Refinancing your current HELOC into a new one could be a great money-saving option for you.

Advantages Of Refinancing Your HELOC

Refinancing your home equity line of credit can provide many potential benefits; however, not every loan or financial goal is created equal. Here are a couple potential advantages to a HELOC refi.

Lowering Your Interest Rate

As we’ve all witnessed the recent changes in the economy, especially in real estate, the interest rate on your current equity line may predate more recent lower rates. Taking advantage of a refinance could provide you with potential savings.

Gain A Longer Draw Period

Are you approaching the repayment period of your loan and want to take advantage of unused funds? Or have your new financial goals become more immediate and extending your draw period could provide you with more flexibility? A refinance can not only give you potential access with extra needed cash but would give your current draw period a much-needed boost.

While refinancing a HELOC is possible and can provide several financial benefits, it may not always be the best option. Exploring alternatives such as personal loans or different equity loans could provide you with a better solution. As always, discussing your goals with a trusted loan advisor can give you insight into all of your options to make the best decision.

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