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Mike Bjork at Arbor Financial Group

Mike Bjork

Arbor Financial Group

Phone: (310) 923-1884

Email: [email protected]

NMLS# 275652

Company NMLS# 236669

Licensed in: CA, MN, AZ

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Compare HELOC, Home-Equity Loan, and Cash-Out Refinance | Arbor Financial Group

Compare your options.

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Step 2 of 3 · Option comparison

A home-equity loan or HELOC adds a second loan and leaves your first mortgage alone. A cash-out refinance replaces the first mortgage with a larger one. Compare the payments, costs, and what you keep.

Start with your current first mortgage and the amount you want. The rates and fees below are examples. Replace them with your own loan quotes or estimates.

Home-equity loan

HELOC

Cash-out refinance

Figures are estimates for comparison. They exclude taxes, insurance, and other costs, and they assume the balance is paid as scheduled.

A HELOC rate can change. Test a higher rate before you open a line. Payments during draw are interest-only in this example, and the repayment payment is calculated on the amount borrowed.

Is your first mortgage rate lower than today's rates? If so, a cash-out refinance replaces that low rate.

Can you afford the payment at a higher variable rate?

Will the money go to a goal that lasts longer than the repayment term?

If the payment after borrowing would be hard to sustain, or if the money would pay for something that loses value quickly, keeping your current loans may be the better choice. Missed payments on a home-secured loan can lead to foreclosure.

· NMLS #

These comparisons are illustrations, not a quote, approval, or loan offer. Rates and fees vary. Home-equity borrowing creates debt secured by your home, and failure to repay can lead to foreclosure.

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