Home equity loan refinancing can be used as a chance to refigure the terms of your loan. If your previous loan repayment period was too short, it can be extended in the new agreement. Refinancing can also be used to consolidate debt, which includes a second mortgage if one had already been acquired.

In the case that current interest rates have dropped significantly, a homeowner may want to look into refinancing. Interest rates are now at historic lows. If a homeowner bought his or her home when the rates where much higher, thousands could be saved by refinancing. Refinancing is the process by which a new loan is created to cover the old loan. The new loan should have a lower interest rate. In order to take cash out during home equity loan refinancing, the borrower would increase the loan in order to borrow against the equity of the home. If a home has $50,000 in equity, a refinanced home equity loan would increase, using this amount as a guideline. Many lenders will allow borrowers to go increase the new loan to up to 85% of the equity.

Both home equity loans and home equity credit lines are good options. A home equity loan will allow a homeowner to borrow against the value of their home to take a cash advance in the form of a standard loan with a fixed interest rate. Home equity credit line makes available a line of credit with an adjustable rate with amount based on the home’s equity from which the homeowner can draw funds. These are excellent loans that homeowners should take advantage of unless the current interest rates are significantly lower than the one tied to their first mortgage.

Home equity loan refinancing makes home owners able to save money by locking in new low interest rates and allows them to use the equity of their home to fund big purchases and home improvements. Apply online using our free application to contact a home equity loan refinancing expert.