Should I Give Up My Low-Rate Mortgage to Access My Home Equity?
Many homeowners with low-rate first mortgages want to access equity but do not want to refinance. Here is a look at the options — including a newer second-lien reverse mortgage strategy that may allow eligible older homeowners to do both.
It is one of the most common questions homeowners ask: "I have a lot of equity and a mortgage rate I do not want to give up. Is there any way to access equity without refinancing my first mortgage?"
A cash-out refinance replaces your existing first mortgage — not ideal if your rate is very low. A HELOC keeps your first mortgage in place but requires monthly payments. For eligible older homeowners, a second-lien reverse mortgage may offer another path: access equity while keeping the existing first mortgage in place, with certain products not requiring a monthly P&I payment on the second lien.
The right answer depends on your specific situation. Stephanie can help you compare the options.
NMLS Individual #1087365 · NMLS Company #1147207 · CA DRE #01265685
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Written by
Stephanie Pedley
Mortgage professional and real estate broker with 34+ years of experience in lending, underwriting, and loan strategy. Licensed in California, Colorado, Texas, and Ohio. NMLS Individual #1087365 · NMLS Company #1147207 · CA DRE #01265685.
