| A brief note about the difference between mortgage | | | | reduce overall debt and monthly loan payments. |
| refinance, home equity loans and home equity lines of | | | | Applying for a home equity loan now, while interest |
| credit. All three offer interest rates that are generally | | | | rates are still reasonably low, can help to save |
| lower than other forms of credit. | | | | thousands of dollars compared to other forms of |
| A mortgage refinance is a new loan that is used to | | | | credit such as credit cards, with rates around 13 and 14 |
| partially, fully or more than pay off a preexisting loan. In | | | | percent. |
| instances where a refinance amount is more than the | | | | Leveraging Home Equity for Debt Consolidation |
| original loan amount, the borrower 'pulls' money out of | | | | Leveraging equity in your home is a great option for |
| the house and chooses to take a higher monthly | | | | individuals wanting to pay off credit card or student |
| payment and have cash available for spending. A | | | | loan debts, or to make valuable home improvements. |
| mortgage refinance is ideal when a borrower can opt | | | | An added benefit to lower rates is also consolidating |
| for a more stable (fixed over adjustable) or lower or | | | | bills. Dealing with one lender and making one payment |
| still relatively low interest rate. In general, borrowers | | | | saves a lot of time, and hassle. |
| must wait 2 years for a full refinance. | | | | Some additional Benefits associated with Home Equity |
| A home equity loan is generally a second or third | | | | Loans and Mortgage Refinance: |
| mortgage on a home. As a borrower has more loans | | | | Attractive Fixed interest rates - 30-year and home |
| or more debt in the home (less equity), the interest | | | | equity rates are still near all-time lows. Borrowers who |
| rates will tend to be higher. As opposed to a home | | | | own their home for more than 2 years and are |
| equity line of credit, a borrower must decide how | | | | currently on a variable rate may want to consider |
| much the home equity loan amount will be and take | | | | locking in a great rate for 10, 15 or 30-years. Reduce |
| that money immediately (rather than a line of credit) | | | | monthly payments - consolidating higher interest rates |
| and in full. | | | | into lower interest rates just makes good financial |
| A home equity line of credit is an amount that is | | | | sense. Most individuals can save $50 to $100 each |
| available for a period of time (i.e. 5 years) and the | | | | month by simply understanding the options available to |
| borrower will pay the interest/payments of the | | | | them today! Tax deductibility - interest on home loans |
| outstanding balance of the credit line only. Many | | | | are tax deductible, versus the interest payable on |
| lenders provide 'no fee' home equity lines of credit as | | | | credit cards. By moving credit card debt to a |
| the market can be quite competitive for this type of | | | | mortgage refinance or small home equity loan or line |
| product. | | | | of credit, you could save hundreds a year. Most home |
| With home equity and mortgage refinance rates | | | | equity loans or mortgage refinances will save you |
| around 6.5%, home loan interest rates are now | | | | significantly over the course of several years, and a |
| significantly lower than most other forms of credit. | | | | noticeable amount immediately. |
| With so many homeowners gaining considerable | | | | Mortgage the right way at Mortgages and information |
| amounts of equity in their homes over the past few | | | | about home equity loans, home loan refinance and |
| years, home equity loans are a great way to help | | | | rates. |