| If you are considering a home equity line of credit or | | | | loan. |
| second mortgage loan, refinancing your mortgage with | | | | When you refinance your mortgage and take cash |
| cash back could save you a lot of money. Depending | | | | back, you are simply borrowing more than owe on the |
| on your financial needs, you could even lower your | | | | first loan. The difference between the old mortgage |
| monthly payment amount. Here are several tips to help | | | | and your new loan is what you will receive in cash. |
| you decide if mortgage refinancing is right for you. | | | | Because you are only carrying one mortgage you will |
| Home Equity Lines of Credit are a popular, yet | | | | qualify for a lower interest rate and have several |
| expensive source of secured credit. When you | | | | options for lowering your monthly payment amount. |
| borrow using an equity line, the lender provides you | | | | There are a number of Adjustable Rate Mortgages |
| with a debit card you can use to charge against the | | | | (ARM) that when used properly, can drastically reduce |
| ownership of your home. This ease of access is one | | | | your payments. There are risks associated with |
| reason homeowners often overspend with equity lines; | | | | Adjustable Rate Mortgages, so it is important that you |
| however, because your home is secured by two | | | | understand what you are getting into. |
| loans, the interest rate on the equity line will be | | | | In addition to choosing a mortgage with a lower |
| significantly higher. Higher interest rates means higher | | | | interest rate, you can reduce your payment by |
| payments, and in the case of a home equity line of | | | | borrowing for a longer period of time. By choosing a |
| credit, the temptation to overspend. | | | | mortgage with a longer term length, your payment will |
| Second mortgages are a more affordable alternative | | | | go down. Keep in mind the longer you carry a |
| to equity lines of credit. You will still have to pay a | | | | mortgage, the more you pay for the financing; |
| higher interest rate for carrying two mortgage loans. | | | | however, as a short term solution to a financial need, |
| Because second mortgages pay out in one lump sum, | | | | having a lower payment can be beneficial. |
| when the money's gone you will not have the | | | | You can learn more about mortgage refinancing, |
| temptation to overspend like you do with an equity line | | | | including common mistakes to avoid by registering for |
| of credit. Mortgage refinancing can be a more | | | | a free mortgage guidebook. |
| affordable alternative to both types of home equity | | | | |