Edge of Bankruptcy

Submit Enquiry




Enquiry Type


Enter Code:

Cash Out Refinance Mortgage Loans Home Equity, 2nd Mortgage Or Cash Out Refinance Loan

By: Carrie Reeder

There are some definite benefits to doing a cash out refinance. Just make sure that overall you are not going to be spending more money in fees and interest doing a cash out refinance as opposed to a home equity loan. When you do a cash out refinance, you are refinancing your entire loan. Let's say you owe $300,000 on your home and you want to get $10,000 in cash out. If in refinancing your rate will be the same or higher, then you will be losing an extraordinary amount of money in fees just to get a $10,000 loan. In a case like that, you would definitely want to go with a home equity loan.

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 100% of 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.

This article is free for republishing
Source: http://www.articlealley.com/article_4233_19.html

Don't Miss...
  1. The Catch Behind No Closing Costs Refinance Loans
  2. The Catch Behind No Closing Costs Refinance Loans
  3. Calculate Your Mortgage Options
  4. Online Mortgage Calculators Give You the Answers
  5. Confused About Some Mortgage Terms? Don't Be! Read On To Get Your Mortgage Questions Answered!
  6. Home Mortgage Loans For People With Bad Credit
  7. Payday Loans and a Nightmare Waiting to Happen
  8. Home Mortgage Loan Pre-approval Online Keys When Applying For A Mortgage Online
  9. New Home Loan - 3 Tips To Speed Up The Mortgage Loan Approval Process
  10. Bi-Weekly Mortgage Calculator - How Much Will it Save You?
  11. Mortgage Information - Refinancing? Second Mortgage? Home Equity Loan? Understand The Basics
  12. Payday & Cash Advance Loans Online How Do Online Payday Loans Work?
  13. Fast Cash Advance Payday Loans - Convenient To Use Online
  14. Home Equity Line Of Credit Or Second Mortgage Loan Online - Things To Do With Your Homes Equity
  15. No-Fee Mortgages May or May Not Be Cheaper
  16. Mortgage Loan Information - Know The Basics When You Refinance Or Purchase A Home
  17. Home Equity Loans Online
  18. Poor Credit Home Mortgage Loans - The Role Of The FICO Score
  19. Cheap Loans Till Payday - Using Cash Advance Loans In An Emergency
  20. Residential Mortgage - Finding The Best Home Mortgage Lender
  21. Bad Credit Home Loans - Pre-approval Is Still Possible With Adverse Credit History
  22. Refinance Mortgage Loan Tips On Refinancing Your Home Mortgage
  23. No Fax Payday Loans Online For A Fast Cash Advance Loan
  24. Bad Credit? First Time Buyer? You Can Still Get Approved For A Home Mortgage Loan
  25. Bad Credit Home Financing - Get The Mortgage Loan You Want Even With Poor Credit
  26. Bad Credit Home Equity Loans
  27. Faxless Payday & Cash Advance Loans - Fast Cash, No Faxing Loans, The Easiest Payday Loan Process
  28. Refinancing Mortgage Loan - Get The Lowest Interest Rate You Can When Refinancing
  29. Bad Credit Home Loan - Apply Online And Keep Your Credit Score As High As Possible
  30. Debt Consolidation Refinance Loans - A Great Way To Lower Your Bills
  1. Cash Til Payday Loans - When Is The Best Time To Get A Quick Cash Loan
  2. Cheap Loans Till Payday - Using Cash Advance Loans In An Emergency
  3. Bad Credit Debt Consolidation Loans
  4. Bad Credit Home Equity Loans
  5. Bad Credit Home Loans - Pre-approval Is Still Possible With Adverse Credit History
  6. Bad Credit Mortgage Loans How To Get Approved
  7. Bad Credit Payday Or Cash Advance Loans - No Credit Check Required
  8. Bad Credit Refinance Loans - Finding A Good Lender
  9. A Little Lesson on Loans
  10. Cash Loans...The good, the bad, and the debt-free

© Edge of Bankruptcy 2008. All Rights Reserved