Refinancing a loan is replacing the original mortgage with a new mortgage. After the process, there will only be one loan outstanding. A refinance can only be undertaken if the home has enough appraised value to cover the outstanding principal on the original mortage. Many people refinance their mortgages to either take advantage of a lower interest rate (the rule of thumb states the rate must be at least 1% lower than the current mortgage rate) or to unlock equity derived from the increasing value of a house.
When a refinance is complete, there will only be ONE loan outstanding after the transaction has been completed. Most refinanced loans last 15 to 30 years.
Taking out a home equity loan is acquiring a second loan (sometimes known as a second mortgage) based on the estimated residual value of the home after taking into account the first mortgage's outstanding principal. Typically, home equity loans are taken to do home improvements, support debt consolidation (as most home equity loans, up to a certain loan to value ratio, can have interest written of on taxes), etc. The interest rates on home equity loans tend to be higher than those on first mortgages by 1% to 4%.
When a home equity loan is taken, there will be at least TWO loans outstanding after the transaction has been completed. Most home equity loans last 10 years.
There are a few differences between refinancing and a home equity line of credit. One difference is that the interest rate on a refinanced mortgage is generally lower than the interest on a home equity line of credit.
One can find information on refinancing home equity loans at local banks, financing companies and credit unions. There are also several online sites one can consult for information on refinancing home equity loans.
Some of the disadvantages to refinancing a home are the cost, loan term, equity reductions, owning less of your home when done, and the time it will take. Those are some of the disadvantages of refinancing a home.
One can find equity home loan mortgage refinancing in Houston at the following places: Loan Star Financing, TexasLending and even at Houston Home Loan.
There are many differences between a refinance loan and a home equity loan. These include differences in costs, loan structure, interest rates and accessing your money.
There are a few differences between refinancing and a home equity line of credit. One difference is that the interest rate on a refinanced mortgage is generally lower than the interest on a home equity line of credit.
One can find information on refinancing home equity loans at local banks, financing companies and credit unions. There are also several online sites one can consult for information on refinancing home equity loans.
There are many differences between a refinance loan and a home equity loan. These include differences in costs, loan structure, interest rates and accessing your money.
Some of the disadvantages to refinancing a home are the cost, loan term, equity reductions, owning less of your home when done, and the time it will take. Those are some of the disadvantages of refinancing a home.
One can find equity home loan mortgage refinancing in Houston at the following places: Loan Star Financing, TexasLending and even at Houston Home Loan.
One is able to get information on refinancing home equity mortgages on websites such as the following: Citizen's Bank, Chase, HSH, Chartertone, and Card Member Services.
There are many differences between a refinance loan and a home equity loan. These include differences in costs, loan structure, interest rates and accessing your money.
Both refinancing and home equity loans release finance from the equity a person holds in their property. The difference that a loan is taken out based on the amount of debt owed on the property against the value if it was sold, but is separate form your mortgage. Refinancing will replace your current mortgage with a new one. Equity Loans generally carry a higher rate of interest that a mortgage.
The pros of refinancing a mortgage versus choosing a home equity loan is that one does not need to pay that much interest. The cons is that it is not that easy to refinance a mortgage.
Home equity loans and refinancing are two related but noticeably different financial products. With that in mind, information on both concepts are available through banks and other sources.
The Federal Reserve website offers a consumer's guide to mortgage refinancing. Some bank websites, such as University Credit Union for example, offer information on the advantages and disadvantages of refinancing vs. home mortgage equity loans in particular.
Home equity loans are generally more favorable in the face of interest rates and terms. Home equity loans are also generally cheaper compared to other options.