Newsletter: June 2024

Welcome to summer here in East Tennessee! It’s been incredibly HOT, and everywhere I go, someone is turning up the A/C. I hope you’re all staying nice and cool in this heat.

I also hope all you Dads out there had a great Father’s Day. I was thinking about my own Dad on Father’s Day. He’s been gone some years now, but I do have some wonderful memories. You know, my Dad built every home I lived in as a child. That was a huge job! And not only that, he would help anyone build anything. He was a builder at heart, and sometimes I wish I had his skill. I think of him often; especially when I hear a hammer tap three times. I’m pretty sure that’s my Dad saying, “I love you,” from heaven. I believe it’s his commitment to serving and helping that makes me who I am today, and drives my desire to help people find the right financing.

How about you? What’s special about your Dad?

I have another question for you. Now that Father’s Day is behind us, and summer has officially started, are your clients looking to refinance their homes? Maybe they’re consolidating debt, or making renovations and repairs, or maybe they’re considering the purchase of an investment property. Regardless of the reason, it just seems like the summer months are popular when it comes to refinancing.

I get a lot of questions about refinancing, but the number one question comes from clients. They want to know the best way to tap into their home equity. Although there are many ways to do that, there are two popular options. The first is a cash-out option, and the second option is to use a HELOC. Both can help clients access their equity, and both are good options, but there are some differences between the two that can make or break a successful refinance.

Here are the top 3:

1. Lump Sum vs. Revolving Credit.

With a cash-out the client receives a lump sum after closing and taking on a larger mortgage. With a HELOC the client has access to a revolving line of credit that they can draw on whenever needed. They can take what they want, when they want, up to a maximum amount.

2. Interest Rates.

Generally a cash-out refinancing loan has a lower interest rate than a HELOC because a cash-out is a fully amortized loan. And I say generally because a HELOC is tied to the prime rate and can fluctuate over time. So it depends on how the client feels about a fluctuating rate. Maybe they’ll feel more comfortable with a rate that doesn’t change. Or, maybe they’re not bothered knowing their interest rate could change from time to time.

3. Closing Costs.

With a cash-out option the client is usually required to pay all the closing costs up front, just like any other transaction. But a HELOC tends to have lower up front fees, and that alone can save some money.

A couple other differences to consider are repayment terms and tax deductibility. These require a little more analysis, but that’s something I specialize in, and I can always help with that. My goal is to educate a client so they know exactly what they’re getting when they close on a loan.

So, both are good options, but it all boils down to the client’s specific needs, financial situation, and their plans for the equity. With a good analysis and a little education they can make the best choice possible for themselves.

If you have summer clients looking to refinance, send them my way. I’d be happy to help them decide on a cash-out option or a HELOC option. I’m always available at (865) 745-5626.

Here’s to summer fun!

And…as always…let’s mortgage!

John Fleming
Loan Originator | NMLS 1850409
(865) 745-5626

P.S. When it comes to refinancing, the right choice depends on the client’s specific needs, their financial situation, and their plans for using the equity. I’m committed to helping them navigate the process and secure the best refinancing possible. Send them my way. My number is (865) 745-5626.

Food For Thought: East Tennessee’s real estate market offers plenty of opportunities for homeowners. It’s such a diverse landscape; offering something for just about everyone, making it a flourishing hotspot. And guess what? Knoxville is #2 on the list for hot markets. Culture, education, and commerce play a big role, but let’s not forget the natural beauty of the region. It’s a great place to buy a home. And I’m committed to helping home buyers find the best loan possible. Call me at (865) 745-5626 to discuss options.


It’s time to get patriotic! Festival on the 4th is just around the corner. This is a free family event that takes place at the World’s Fair Park Performance and Festival lawns. It’s free for everyone and begins at 5:00 p.m. There’s a lot to enjoy. Water wars, axe-throwing, mini golf games, and paddle boats. You won’t go hungry either, because there’ll be plenty of food trucks. And music! Several bands will perform during the event. But the best part of all? Fireworks! Don’t miss that! I think everyone will have a great time RAIN or SHINE! I’ll see you there.