Perhaps you need to make a major repairs on your home, or maybe you closed your mortgage when interest rates were high. These are both good reasons to look into refinancing. But when is it better to take out a home equity loan or second mortgage and when is it better to refinance? This is a question many homeowners have when thinking about refinancing.
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Interest rates are at historic lows, which means it is time to consider refinancing. Whether to lower monthly payments, consolidate debt or fund home improvement, refinancing can be a great way to take advantage of low interest rates. Apply online today to contact up to four lenders about home refinancing.
Also, if the borrower is unhappy with the conditions of the first loan, refinancing can correct those problems. An adjustable interest rate can be made a fixed rate or a 15 year term can be turned into a 30 year term.
If the amount needed for your repairs are not very significant, or if your first mortgage already has a low interest rate, a home equity loan or line of credit may be more appropriate. If all that is needed is ten or twenty thousand, the trouble it would take to refinance your entire first mortgage and receive cash back would not be worth it.