We are looking to borrow money from several financial institutes and don’t know which is the best way to go.
2 Comment(s)
that depends on a couple of things. First, what is the rate on your current first mortgage? If the rate you can get refinancing is as good as or only slightly higher than what you have now, it might be better to refinance because second mortgage rates are generally higher by several points. Home Equity lines of Credit are generally adjustable rate interest loans based upon the prime rate so if you are looking for more than you can repay in a year or two you have to consider what might happen if the Fed raises the prime rate of interest and the impact that would have on your payment.
Yes there are costs involved in refinancing that may be higher than those of a second mortgage or line of credit but those are usually included in the amount to be refinanced and you can amortize the write off on those costs so if the payment is what concerns you a refinance might be in your best interests if you are looking to see cash in excess of $10,000..
It depends on several factors which will save you more? Do you plan on staying in the home? If you plan on selling it in the near future I would recommend the equity line It is flexible and only requires interest payments. However, if you plan on staying in the home I would recommend the refinance for the best rate possible
I would be more then happy to offer you a quote.
that depends on a couple of things. First, what is the rate on your current first mortgage? If the rate you can get refinancing is as good as or only slightly higher than what you have now, it might be better to refinance because second mortgage rates are generally higher by several points. Home Equity lines of Credit are generally adjustable rate interest loans based upon the prime rate so if you are looking for more than you can repay in a year or two you have to consider what might happen if the Fed raises the prime rate of interest and the impact that would have on your payment.
Yes there are costs involved in refinancing that may be higher than those of a second mortgage or line of credit but those are usually included in the amount to be refinanced and you can amortize the write off on those costs so if the payment is what concerns you a refinance might be in your best interests if you are looking to see cash in excess of $10,000..
mazziatplay | Nov 14, 2009 | Reply
It depends on several factors which will save you more? Do you plan on staying in the home? If you plan on selling it in the near future I would recommend the equity line It is flexible and only requires interest payments. However, if you plan on staying in the home I would recommend the refinance for the best rate possible
I would be more then happy to offer you a quote.
CAS | Nov 17, 2009 | Reply