Home equity loans are better if:
1. You have a large home loan yet only need to cash out of a small amount of equity
2. You need to borrow up to 100f the equity in your home
3. You want a revolving credit line
4. You want a payoff sooner, or longer than the term of the rest of your mortgage loan
On the other hand if you are:
1. Going to refinance anyway
2. Wanting to borrow a large percentage of your home’s equity
3. Refinancing for a much lower rate
Then, a cash out refinance loan may be best for you. Of course, the best way to tell is to actually sit down and do the math. These are just guidelines; the real test is in the math. You can consult a refinance calculator and a home equity loan calculator and figure out which one will save you the most money in the long run. Compare the total amounts you will spend in interest and fees. If you are planning on a cash out refinance, make sure that you are refinancing with a low enough rate to justify the fees to refinance. Your loan specialist should be able to help you figure out which one is best for your needs.
About the Author
To see a list of recommended mortgage loan companies who can offer cash out options online, visit this page: www.abcloanguide.com/mortgageloans.shtml- Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan website, with informative articles and the latest finance news.
Source: ArticleTrader.com