Refinance Home Equity Mortgage Loans
Wondering if you should choose a home equity loan instead of a mortgage refinance? The best choice isn't always clear. Both types of loans have pros and cons.
If you choose a home equity loan and elect to take a line of credit instead of a lump sum, you can avoid paying interest on money you don't actually use. This means if your line of credit is for $50,000 and you only use $20,000, you are not stuck paying interest on the entire amount. You'll just pay interest on the $20,000 you use.
Pocket Cash with Refinance and Home Equity Mortgage Loans
Another benefit of home equity loans over refinance loans is your ability to access the money whenever you need it. For example, if you need $10,000 right away, you can use it, paying interest on that amount only. If you need $5,000 more later, there is no need to reapply. The money is right there waiting for you when you need it.
Refinance loans have their benefits as well. For example, you may be able to enjoy a lower interest rate with a mortgage refinance loan. Also, you may be able to spread payments out over a longer period of time with a refinance loan. The right loan for you depends on your unique goals and your particular circumstances. To learn more, start talking to lenders today. Complete our online quote form at 4MortgageRateQuotes.com to obtain information and the lowest rates on home equity and mortgage refinance loans.