HRC members, families and friends, a sweet home deal awaits you!

As a homeowner, you have a great opportunity to make the most of the value in your home. You can use the equity in your home to make smart financial decisions. Here, we've provided you with some information to help you learn more about your options and understand how refinancing can help you access your equity.

› What is equity?

Equity is the net value of your home that you own outright. In other words, it is the fair market value of your home minus what you owe on your mortgage. For example, if your home is worth $100,000, and the balance remaining on your mortgage is $60,000, then your home's equity is $40,000. You own $40,000 of your home free and clear.
(Your home's fair market value) minus (the principal balance remaining on your mortgage) = Equity

› What can I use my equity for?

You can use your equity for just about anything. Some of the reasons homeowners use their equity include: It is important to determine your needs and think about the nature of your expenses so you can use your equity wisely. Many homeowners use their equity for major items and not for day-to-day expenses. Once you have categorized your equity financing needs, your next step is to learn about what kinds of home financing options are available.

› What is cash-out refinancing and how can it benefit me?

Chase offers two ways for you to borrow against your equity. One way is through "cash-out" refinancing. Cash-out refinancing allows you to refinance your mortgage for more than you owe and pocket the difference in the form of cash. At the same time, you may have the opportunity to lower the interest rate on your mortgage payment. Click here to check our current mortgage rates.

Here's an example of how it can work:

This example assumes and 80% loan-to-value for a 30-year fixed rate mortgage. The Annual Percentage Rate (APR) is the cost of credit over the term of the loan expressed as an annual rate. The APR shown here is based on interest rates and points only and does not take into account other finance charges you may be required to pay.
* APR's are not guaranteed.

Plus, remember, if you choose cash-out refinancing, we can streamline the process and refinance your loan faster and at a very competitive rate, because you already have a mortgage with us.

› How is a home equity loan or line of credit different from cash-out refinancing?

You can also tap into your equity without refinancing by choosing to get a home equity loan or line of credit. With a home equity loan, frequently called a "second mortgage", you can borrow cash against the equity in your home. You receive the entire amount of the loan up-front, and the interest rate is fixed for the life of the loan. You repay the loan in fixed payments every month, which includes principal and interest. Your current mortgage payments and rate do not change.

Similar to a home equity loan, with a home equity line of credit, you also borrow cash against the equity in your home. However, the difference is that instead of receiving the entire amount of money up-front, you receive a checkbook to access your account as many times as you'd like during the access period, up to your credit limit--similar to a credit card. You only pay interest once you use the money.

In addition, it is important to note the interest rate on a Home Equity Line of Credit is variable instead of fixed. This means the interest rate can change-either go up or down-depending on how the national interest rate moves.

› More sweet news

Another key perk of borrowing against your equity is that unlike most other loans, the interest you pay is typically tax deductible when you itemize your deductions on your income taxes. Your tax advisor can help you determine what expenses may be deductible and the best way to file your taxes.

› Get Started Now!

Contact a Chase Home Finance representative today to find smart ways to put the equity in your home to work, with all of the advantages you deserve.


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