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Marion
Interest paid on a mortgage or home equity line of credit are tax deductible. It depends on your current mortgage rate and terms as to whether a home equity line of credit or cashing out and consolidating all your debt is best for you.
Usually, you can save a lot more a month, even if your mortgage percentage rate goes up some, if you are paying off higher interest debt. E-mail me if you want a complete analysis.
Antonio
If your goal is to pay off your existing loan, your only option is to refinance. A HELOC is essentially nothing more than it sounds – a line of credit backed by your house and therefore with a lower rate than unsecured instruments like credit cards. You would use a HELOC if you were satisfied with your current mortgage rate and wanted to consolidate a bunch of payments into a single one with a more attractive rate.
So, when you refinance your home at a better rate, property taxes and insurance (both types: mortgage insurance if less than 20% equity and homeowners) will both be components of your “PITI” payment (principal, interest, taxes, insurance, [mortgage insurance])
Alan
refinancing is like starting the loan all over from the begining as for an equity loan your taking money out of the house worth example( you paid 150,000 house now worth 250,000 you take a equity loan for 50,000) still have 2 payments..if your refi you can still pay off you car and other bills the interest rate of course depends on credit rating.
i refied recently paid off bills great fixed rate and only 1 payment to make each month. ask plenty of questions when you go to the bank..read everything twice
Beth
A “line of credit” gives you the option of writing yourself a loan against the equity in your house. Unless you write yourself a loan there are no payments (or interest) to pay on a line of credit. Excellent replacement for a savings emergency fund if you like to keep all funds fully invested. A home equity loan is where you actually take out money at the time of applying (a type of second mortgage). Neither affect your primary mortgage.
Refi’ing means refinancing (replacing) the first mortgage (and any second) and can be expensive if you pay points to reduce the interest rates. In any case probably more expensive than a HELOC (home equity line of credit) or a home equity loan.
Hope this helps
Tina
You have to know your fico score to begin your search and that will determine which route you will go since refinancing requires your fico score to see what loan rate you will get. If you have a fico score of 700 or higher, you will have better options in this market. Further, check if you have a prepayment penalty. I think you can get a free report once every 18 months. Check online. Start out with the current lender and see what they can offer you. Then shop around. Talk to some lenders-banks, mortage brokers, and etc. Tell the lenders this is my fico, debt, income, and property. So, what can you offer. Experienced and good lenders will be able to give you “ball park figures” with out running your fico everytime. Then choose the one based one what they tell you. Use common sense though if it sounds too good to be true. You will get an idea overall, The difference is that in and equity loan you borrow money based on the equity of your home. In refinancing, you obtain another loan against the property you own. The costs are also a lot higher in refinancing. Equity costs are very low and easier to obtain than refinancing. If you plan to refinance, then obtain a lower fixed rate or a rate that can be of 5 or 10 years if you dont plan on owning tha property for that amount of time. Check loans out there. Another question, is it an income property that you rent? Rates on those are higher. I dont recommend paying your car or bills off with a refinance that has a life of ten years or more. Refinance to get a lower rate and get an equity to pay off your car and bills. The equity is smaller and can have less life. You can pay off faster than a long life loan. Compare the rates and see what works for you