Andrew Vaughey, Cash Out Refinance Mortgage Loans – Home Equity, 2nd Mortgage or Cash Out Refinance Loan<br><br><br><br><p>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.</p><p>Home equity loans are better if:</p><p>1. You have a large home loan yet only need to cash out of a small amount of equity</p><p>2. You need to borrow up to 100% of the equity in your home
</p><p>3. You want a revolving credit line</p><p>4. You want a payoff sooner, or longer than the term of the rest of your mortgage loan</p><p>On the other hand if you are:</p><p>1. Going to refinance anyway</p><p>2. Wanting to borrow a large percentage of your home's equity
</p><p>3. Refinancing for a much lower rate</p><p>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.</p><p>For a list
of recommended Refinance Lenders or if you would like to use a mortgage
calculator to help you compare a home equity or refinance loan for your
cash needs, click here: <a target="_new" href="http://www.abcloanguide.com/refinance.shtml">Recommended Cash Out Refinance Lenders</a></p><p>Carrie Reeder is the owner of <a target="_new" href="http://www.abcloanguide.com/">
ABC Loan Guide</a>.
ABC Loan Guide is an informational loan website with informative
articles and suggested mortgage lenders. ABC loan guide has listed
recommended refinance lenders to help you with your needs.</p><br>