Refinancing with Home Equity Loans

By: Jennifer Hershey

If you have lived in your home for a reasonable amount of time, you may be considering refinancing.

Refinancing can be done in a few different ways. One of the most popular recently has been the home equity loan.

A home equity loan is a loan used to pay off your existing mortgage at a lower rate.

Also, when refinancing with a home equity loan, you have the option of liquidating some of the equity you have established in your home through monthly mortgage payments and appreciation.

Lets suppose you owe $125,000.00 on the mortgage to your home, but your home is worth $200,000.00. This means you have $75,000.00 worth of equity that you can liquidate.

Realistically, you could get a home equity loan for $150,000.00, pay off your existing mortgage, and have $25,000.00 left for home improvement, a new car, college tuition, etc.

Home equity loans also come in the form of a line of credit, better known as a home equity line of credit.

The difference between a home equity loan and line is that the line comes with a variable rate, which means it will adjust with the prime rate, so be careful when deciding.

The home equity credit line can also be re-tapped once it has been partially paid off, or paid off in full, which makes for much convenience.

Before deciding on how you want to go about doing your refinancing, be sure to educate yourself as much as possible about the mortgage industry.

Also, shop around for the best rate and program that fits your needs and budget. The mortgage industry is a competitive one, so let them fight for your business. Good luck.

Author Bio
Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of www.explainingmortgages.com, a mortgage resource site devoted to making mortgage terms and products easy to understand.

Article Source: http://www.ArticleGeek.com - Free Website Content

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

Custom Search

More Mortgage-Refinance Information:

Group 1
Group 2
Group 3
Group 4
Group 5
Group 6
Group 7
Group 8
Group 9
Group 10
Group 11
Group 12
Group 13
Group 14
Group 15
Group 16
Group 17
Group 18
Group 19
Group 20
Group 21
Group 22
Group 23
Group 24
Group 25
Group 26
Group 27
Group 28
Group 29
Group 30
Group 31
Group 32
Group 33
Group 34
Group 35
Group 36
Group 37
Group 38
Group 39
Group 40
Group 41
Group 42
Group 43
Group 44

Home Equity Loans in Texas

A few notes of importance:This only applies to a homestead property, that is the customers primary residenceLTV refers to Loan to Value, meaning the loan amount as compared to the value of the home. As an example, a loan of $75,000 on a home valued at $100,000 would be a loan at 75% LTV.

13 Extra Costs to be Aware of Before Buying a Home

Whether you're looking to buy your first home, or trading up to a larger one, there are many costs - on top of the purchase price - that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you're not informed and prepared.

Should You Get an Interest-only Home Mortgage?

Before you consider taking out an interest-only mortgage, you should first understand what they are. Unlike traditional, fixed-rate mortgages, interest-only mortgages allows the borrower to initially pay the interest on the principal for a short period of time, rather than making payments on both the principal and the interest.

Think You Cant Get a Mortgage?

You've finally found that dream home that you have always been searching for, but you are afraid to apply for a mortgage because you have bad credit or less than perfect credit.Before you give up entirely, there are many mortgage programs that are geared towards people just like you.

Are Mortgage Rates Today Influencing Your Choice To Buy?

When we make a purchase, developments and costs make a huge effect on the judgment we make. Yet as it approaches to minor purchases, we would be likely to stay it out for some weeks if we make out of a deal that is shortly to happen.

Mortgage loan: Are you qualified for it?

If you are trying to apply for a mortgage loan, you have to make sure that your credit rating and credit history are in good shape. The loan officer will be checking the amount money you earn because it will determine if you will be able to pay them back regularly. Read more to find out if you will qualify for the loan or not.

Know the Hidden Facts of Reverse Mortgages

Income, investments and other monetary activities are dealt with differently depending on the classes, gender and careers of people. While some people might be interested in investing in educational loans and other loans, there is this so called Reverse Mortgage offered to senior citizens. Read out to know about the facts of reverse mortgages.

Benefits Of Fixed Rate Mortgage California!

When you are planning to take home loan one of the option that you should consider is fixed rate mortgage California as they can prove to be very beneficial for you.

Tips To Find The Right Reverse Mortgage Company

Are you in search of Reverse Mortgage Company? In that case, this article can be of great help to you.

Home Equity Kansas: Few Things To Consider Before Submitting Loan Application

While applying for home equity Kansas mortgage loan, it is really essential that you check the reputation of financial lender.

Some More Information about Mortgage Brokers

Mortgage brokers play a significant role in varied kinds of financing needs like debt consolidation and real estate investments. They also come with different compliance program options based on following certain laws and guidelines correctly and completely.

Mortgage-Refinance Information