| Should you consider taking out a second mortgage | | | | These loans come with variable interest rates and are |
| instead of a home equity line of credit or even | | | | the most expensive loan option for borrowing against |
| refinancing your mortgage with cash back? Each type | | | | your equity. The ease of access to the equity is a |
| of equity loan has advantages and disadvantages | | | | downfall for many homeowners that are tempted to |
| over the others. Here are tips to help you decide | | | | spend more than they intended. If you lack self control |
| which type of equity loan is right for you. | | | | when it comes to your finances, steer clear of this |
| Second Mortgage Loans | | | | home equity option. |
| A second mortgage loan has several advantages | | | | Refinance Mortgage with Cash Back |
| over home equity lines of credit. The main advantage | | | | Refinancing your mortgage with cash back is the most |
| is that a second mortgage comes with a fixed interest | | | | affordable option for most homeowners. Because you |
| rate where a home equity line of credit has an | | | | are refinancing your primary mortgage you will qualify |
| adjustable interest rate. The disadvantage is that these | | | | for a much better interest rate. When you refinance |
| loans have higher interest rates than your primary | | | | your mortgage and take cash back you will borrow |
| mortgage and you will have to make two mortgage | | | | more than the balance due on your existing mortgage. |
| payments every month. | | | | The difference between your existing mortgage and |
| Home Equity Lines of Credit (HELOC) Loans | | | | the new loan amount is what you will receive in cash |
| Equity lines of credit offer the greatest amount of | | | | at closing. To learn more about your mortgage and |
| flexibility for borrowers. The loan works just like a | | | | equity loan options, register for a free mortgage |
| credit card that is secured by the equity in your home. | | | | guidebook. |