If you’re kicking around the idea of refinancing your home loan, getting and 2nd mortgage or simply taking out a home equity line of credit there are pros and cons for each of these. If you want to take advantage of today’s best refinance rates you’ll want to opt for a mortgage refinance as second mortgages and HELOC all have higher interest rates. Here’s an article from the TheTruthAboutMortgage.com exploring the differences and options for homeowners looking to tap equity vs. mortgage refinancing:
Today’s match-up: “Second mortgage vs. home equity loan.” This is an epic battle of the junior liens, which while subordinate to their first mortgage brethren, can still hold their own in a fight.
Once you’ve decided which home loan is right for you pay close attention to the fees lenders charge at closing. The reason fees are so important especially when mortgage refinancing is that you’ll have to recoup these out-of-pocket expenses before gaining any benefit from your new home loan.
Most homeowners don’t realize that lender fees and closing costs vary among lenders and that the fees are negotiable. Getting today’s low refinance rates is easy in today’s market; however, the trick comes in avoiding unnecessary fees and other common mortgage mistakes.
You can learn more about saving money on your next home loan with the best refinance rates by checking out my free Underground Mortgage Videos.