Best Equity Release Deals For You
When looking for best equity release deals, you probably wondered what is the difference between a release and a refinance? A release allows you to sell your home, for an agreed price. You then move into another property that can be rented or bought outright. A refinance involves taking out equity from your current home – which means you are borrowing money against the value of your house. Which one is better? That’s up to you to decide!
Regarding loans, the most important thing to consider is what will be your monthly mortgage payment before and after refinancing. In many cases this can go down significantly. It may also allow you more cash flow or a lower interest rate on other debts like credit cards.
Release is better when it comes to cash flow. Refinancing can help you save money and have more cash to spend elsewhere on items that make your day-to-day life easier.
As for the interest rate, it may be lower with a refinance but depending on how much equity is taken out of the home (cash out) this could go up significantly – so these rates should be calculated before making any decisions about refinancing or taking out a release.
Regarding taxes, there are many different opinions as people’s situations vary considerably in terms of their income level, retirement plans etc., so please consult an accountant for advice specific to your situation!
It’s important to note that equity release can be a smart way to provide more cash for you and your family if you are faced with an emergency situation. It should not be viewed as the only option, but it may also come in handy when other options have been exhausted or were never considered at all!