+ LR-Icons —
×

You are leaving laurelroad.com

By clicking Continue, you will be taken to a third-party website. Laurel Road, a Brand of KeyBank N.A., is not responsible for the content, links, privacy policy, or security policy of third-party websites.

Continue Go Back
×

Thanks for your interest in joining us!

Laurel Road’s innovative engineering culture is enhanced by the scale and resources that come with being part of KeyBank N.A., Member FDIC. To see the full job details and apply for this role, you’ll be redirected to our KeyBank recruiting site.

Apply Now
  • Student Loan Help
    • Student Loan Forgiveness Consultation
      Examine your forgiveness and repayment options with our student loan specialists.
    • Public Service Loan Forgiveness (PSLF)
      Learn how to qualify and stay on track for public service loan forgiveness.
    • Income-Driven Repayment (IDR)
      Understand your income-based repayment and forgiveness options.
    • Student Loan Refinancing
      Explore simple refinancing options that could help you save on student loans.
  • Lending
    • Student Loan Refinancing
      Fast, easy refinancing—without the kinks.
    • Mortgages
      Buy a home or refinance with confidence.
    • Personal Loans
      Fund the unexpected with a personal loan.
  • Banking
    • Checking with Rewards
      From monthly cash to student loan rate discounts, get the Checking rewards that meet your needs.
    • Cashback Credit Card
      Redeem cashback towards student loans.
    • High Yield Savings
      Build your savings with a highly competitive interest rate.
  • Resources
    • Financial Resources
      Navigate your financial journey.
    • Laurel Road Perks! ®
      Exclusive member discounts on premium brands, subscriptions, and services.
    • Customer Testimonials
      Hear what our customers have to say.
    • FAQs
      Get answers to frequently asked questions.
    • I’m Also a Doctor
      A new series documenting the extraordinary passions of doctors.
  • For Doctors
  • Nurses
  • Sign In
  • Need Cash? Mortgage Cash-Out Refinance vs. Personal Loan

Need Cash? Mortgage Cash-Out Refinance vs. Personal Loan

When most homeowners think about acquiring a large chunk of money – whether it’s to support an expanding business, tackle...

Published May 13, 2021

4 min read

When most homeowners think about acquiring a large chunk of money – whether it’s to support an expanding business, tackle a home-improvement project, or to pay for a wedding – the first thing that usually comes to mind is to refinance and cash-out on a home or to get a personal loan. But just how do you choose between mortgage cash-out refinancing and a personal loan? We’ll help you figure it out.

Cash-Out Mortgage Refinancing

When taking out a home equity loan, you are essentially offering up a percentage of your home’s value as collateral. Lenders generally require you have at least 20% equity in your home before they will talk terms. The amount of equity you have also helps determine how much you may be able to borrow.

If the amount of money you want to borrow is significant, and your project timeline has some breathing room, a home equity loan may be a better option. Just know, borrowing minimums can be higher than for other loans and will take a few weeks to get approved. One upside to this option? It may also reduce your monthly mortgage payment.

Personal Loans
If you’re in a hurry and not looking to borrow a lot, personal loans have a few top-line benefits as well. One, the borrowing minimum is lower than a home equity loan so if you don’t need much – it can take just days to be approved. There are also fewer fees if any. However, interest rates tend to be higher because lenders aren’t relying on assets, such as a home, to back the loan. The repayment periods for personal loans tend to be shorter, too. They generally run between three and seven years.

When it comes to personal loans vs. cashing out your mortgage with a refinance, what you choose will depend on your own personal needs. Do you need to borrow a significant amount or not? And how fast do you need to receive a payout? You can borrow more with a mortgage cash-out refinance – which will take a few weeks to process – but a personal loan can be approved in a matter of days, though you’d likely have to borrow less but be hit with higher interest rates.

Sources:

https://www.lendingtree.com/personal/which-is-better-a-personal-loan-or-home-equity-loan/

https://www.supermoney.com/credit-cards-vs-personal-loans-vs-home-equity-loans/

https://www.discover.com/home-equity-loans/blog/personal-loan-vs-home-equity-loan/

https://www.discover.com/home-loans/faqs/

https://www.aarp.org/money/credit-loans-debt/info-2015/home-equity-loans-financing.html

https://www.aarp.org/money/credit-loans-debt/info-2015/home-equity-loans-financing.html//www.thebalance.com/home-equity-loans-315556

https://www.investopedia.com/articles/pf/05/041305.asp

https://consumer.ftc.gov/articles/home-equity-loans-home-equity-lines-credit 

https://www.interest.com/home-equity/news/4-smart-moves-for-using-home-equity/

https://www.bankrate.com/finance/home-equity/what-home-equity-debt-is-1.aspx

https://www.capitalone.com/home-equity/learn/how-do-you-pay-back-your-home-equity-loan-or-line-of-credit

 

In providing this information, neither Laurel Road nor KeyBank nor its affiliates are acting as your agent or is offering any tax, financial, accounting, or legal advice.

Any third-party linked content is provided for informational purposes and should not be viewed as an endorsement by Laurel Road or KeyBank of any third-party product or service mentioned. Laurel Road’s Online Privacy Statement does not apply to third-party linked websites and you should consult the privacy disclosures of each site you visit for further information. 

 

Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Mortgage lending is not offered in Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. NMLS #399797. © 2020 KeyCorp® All Rights Reserved. Laurel Road is a federally registered service mark of KeyCorp. 855 Main St, 8th Floor, Bridgeport, CT 06604, USA. regulatory logo

Was this helpful?

You May Also Like

A door half open with keys in its lock, Home Décor Trends

6 Home Décor Trends in 2018 That Will Give Your G...

Read
Three credit cards lying on the table

Consolidating Debt With a Personal Loan

Read
millennials in the process of buying a new house with a Laurel Road Mortgage

How We’re Living in 2018: Your Housing Forecast�...

Read

Don't miss the latest financial resources.

Get tailored Laurel Road resources delivered to your inbox.

    Share

    • Copy Link
    • Email
    • Social

    Social Media Share

    >

    Search Results

    0
    Laurel Road
    • About KeyBank
    • About Laurel Road
    • Leadership
    • Press
    • Refer-A-Friend
    • Apple Store
    • Google Play Store
    • Student Loan Refinancing
    • Healthcare Graduate School Loans
    • Mortgage
    • Personal Loans
    • Financial Resources
    • FAQ
    • COVID-19 Response
    • Contact Us
    • Partner With Us
    • Our Technology
    • Sitemap
    • Online Privacy Statement
    • User Agreement
    • Report Suspicious Activity

    Laurel Road is a brand of KeyBank N.A. All products are offered by KeyBank N.A. Student loans, mortgages, personal loans, and credit cards ARE NOT FDIC INSURED OR GUARANTEED. Member FDIC. NMLS #399797. Equal Housing Lender. ©2023 KeyCorp® All Rights Reserved.

    Equal Housing Lender logo FDIC Member logo