| There are many people who confuse the differences | | | | Deciding between Refinance and Home Equity Loans |
| between a refinance loan and home equity loan. They | | | | Making a determination on whether to obtain a |
| both can provide a way to get access to the equity | | | | refinance or home equity loan can at times seem |
| you have built up in your home but they are two | | | | complicated and confusing. It is important to take some |
| distinctly different kinds of mortgage products. | | | | time to research each option as well as lenders and |
| Refinancing a home loan essentially eliminates the | | | | compare the options and their costs to determine |
| original mortgage loan while creating a new mortgage | | | | which type of loan works best for your current |
| to take its place. People may choose to refinance a | | | | financial situation. Remember, not all loans or lenders |
| loan in order to lower a loans interest rate or decrease | | | | are the same. Lenders often have different rates, |
| the monthly payment on the mortgage. Others look to | | | | terms and fees and costs can very greatly from |
| refinancing a mortgage so they can get cash to cover | | | | lender to lender. |
| a short term expense like a family vacation or kitchen | | | | There is no need to rely solely on your local banker for |
| remodel. | | | | your mortgage needs any longer. The internet has |
| A home equity loan works somewhat differently than | | | | taken the power away from the banker and given it to |
| a refinance mortgage does. This type of loan is | | | | the consumer. Within minutes you will be able to obtain |
| essentially a second mortgage used to pull out cash | | | | rates and terms from multiple lenders giving you the |
| using the equity in your home. An example of this | | | | information you need to make an informed decision as |
| would be if your home was worth $250,000 and the | | | | to who has the best deal for you. So remember, there |
| outstanding balance on your mortgage was $150,000, | | | | are a lot of different mortgage options available to you |
| you would have $100,000 in equity. You may be able | | | | today so take a few minutes and make sure you are |
| to secure a home equity loan in an amount up to the | | | | getting the right loan at the best price. |
| $100,000 in equity you have. | | | | |