Is it Worth Getting a Home Equity Refinancing Loan?
There are many advantages to getting a home equity refinancing
loan, which is also known as a second mortgage. The idea behind this type of
loan is the ability for you, the homeowner, to tap into the equity that is built
into your home. Your equity is simply the market value of your home minus the
amount you still owe on your current mortgage.
You can use a home equity refinancing loan for just about anything you want,
replacing an old or damaged roof, kitchen remodel, paying off debt and any
number of other things. But the thing to remember is that a large loan like this
comes with some serious consequences if it is not paid back in a timely manner.
You will also be responsible for not one, but two monthly mortgage payments once
you close on your home equity refinance loan.
There are several advantages to getting a home equity refinance loan. The first
is that the interest you pay on the loan is deductible on your income taxes to
the first one-hundred-thousands dollars. This can create a great saving off your
yearly income taxes. Another area you will initially save some money on is
closing costs. The closing costs for a home equity refinance loan are
considerably less then that of a first mortgage, usually just several hundred
dollars as opposed to 2 to 3 thousand dollars.
One of the drawbacks of getting a home equity refinance loan is the interest
rate. Compared to the interest on your first mortgage the interest rate for a
second mortgage is usually higher, normally 2 to 3 percentage points higher,
resulting in a bigger monthly payment.
If a home equity refinance loan is in your future make sure that you shop
around. There are many lenders both online and offline and by getting quotes
from these different lenders you will be able to get the best deal that will
suit your needs.
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| TexasLending.com to Discuss Home Loan Options on Radio KLIF in Dallas, Texas - PR Web (press release) Sat, 04 Feb 2012 10:11:34 GMT PR Web (press release)TexasLending.com to Discuss Home Loan Options on Radio KLIF in Dallas, TexasPR Web (press release)CEO and president of TexasLending.com, Kevin Miller, and his co-hosts will discuss the various home loan options available from TexasLending.com including refinance loans, home equity loans, home purchase loans, reverse mortgages and FHA loans on The ...and more »
| | | Mortgage Rates This Weekend: Current Mortgage Rates on 30 Year Home Loans at 3.98% - MonitorBankRates.com Sat, 04 Feb 2012 12:11:43 GMT MonitorBankRates.comMortgage Rates This Weekend: Current Mortgage Rates on 30 Year Home Loans at 3.98%MonitorBankRates.comCurrent mortgage rates on 30 year conforming home loans are averaging 3.98%, unchanged from yesterday's average 30 year mortgage rate. Mortgage rates today on 15 year home mortgage loans are averaging 3.29%, down from yesterday's average 15 year ...and more »
| | | Two Defendents From Brooklyn and Sacramento Charged for Home Equity Loan Fraud - LoanSafe Tue, 31 Jan 2012 14:47:44 GMT Two Defendents From Brooklyn and Sacramento Charged for Home Equity Loan FraudLoanSafeAccording to court records, Kim and Rashidov were responsible for taking out more than $236000 in home equity loans for a single property in West Sacramento. As part of the loan application process, Kim allegedly submitted false and fraudulent ...and more »
| | | When the Home Bank Closes - Wall Street Journal Wed, 01 Feb 2012 15:36:43 GMT Wall Street JournalWhen the Home Bank ClosesWall Street JournalWSJ's Robbie Whelan discusses a consequence of the housing crisis on small business: the drying up of home-equity loans businesses have relied on for funding. Photo of Garner Grub creator Keith Mullin by Michal Czerwonka for The Wall Street Journal.and more »
| | | Mortgage Rates Mixed This Morning: 30 Year Mortgage Rates at 3.97% - MonitorBankRates.com Fri, 03 Feb 2012 12:25:22 GMT MonitorBankRates.comMortgage Rates Mixed This Morning: 30 Year Mortgage Rates at 3.97%MonitorBankRates.comCurrent mortgage rates on 15 year home loans are averaging 3.30%, down from yesterday's average 15 year mortgage rate of 3.31%. Search and compare current mortgage rates today from several lenders by using our rate tables here: ...Cash Out Volume Hits 16-Year LowNational Mortgage Professional Magazine85 Percent of Refinancing Homeowners Maintain or Reduce Mortgage Debt in ...MarketWatch (press release)'Cash-in' Refinancing to Lower Mortgage Debt at 26-Year HigheCreditDaily.comTelegraph.co.ukall 367 news articles »
| | | Irish Negative Equity Home Loans May Reach 80%, Goodbody Says - BusinessWeek Fri, 03 Feb 2012 16:26:18 GMT Irish Negative Equity Home Loans May Reach 80%, Goodbody SaysBusinessWeekSome 31 percent of mortgage properties, representing over 47 percentage of outstanding hoome loan balances were in negative equity at the end of 2010, economists Gerard Kennedy and Tara McIndoe-Calder said in the Dublin-based bank's quarterly report, ...and more »
| | | Two indicted for home equity loan fraud in Central Valley - Central Valley Business Times Fri, 27 Jan 2012 18:02:14 GMT Two indicted for home equity loan fraud in Central ValleyCentral Valley Business TimesKim and Rashidov were responsible for taking out more than $236000 in home equity loans for a single property in West Sacramento. As part of the loan application process, Mr. Kim allegedly submitted false and fraudulent information related to his gross ...Sacramento man accused of mortgage fraud, money launderingBizjournals.comall 3 news articles »
| | | Beware of loan-flipping mortgage scam - Daily Democrat Fri, 03 Feb 2012 08:41:38 GMT Beware of loan-flipping mortgage scamDaily DemocratBy DONNA FUSCALDO/for MediaNews Group The loan-flipping mortgage scam is the evil twin of the helpful home equity loan, which can help put some cash into your pocket for smart purchases like your child's education or a car you need for commuting.
| | | What Low Interest Rates Really Mean For Your Savings And Home Loans - Business Insider Thu, 02 Feb 2012 14:35:04 GMT USA TODAYWhat Low Interest Rates Really Mean For Your Savings And Home LoansBusiness InsiderJittery lenders have made it pretty tough to get a home equity loan, but the deals are good for those who have enough equity and good credit to qualify. Generally, long-term borrowers of large sums are better off with installment loans, which charge a ...Key moves for surviving low interest ratesThe Associated Pressall 1,337 news articles »
| | | How to Finance Your Start-Up Without Tapping Home Equity - Wall Street Journal Wed, 01 Feb 2012 00:41:24 GMT Wall Street JournalHow to Finance Your Start-Up Without Tapping Home EquityWall Street JournalBy contrast, only 11% said home equity would be the best capital source. Despite significant funding challenges, including depressed home prices and a tight overall credit market, entrepreneurship rates have risen from 2006 through 2010, according to ...and more »
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