Your One Stop Resource for Saving Money.
When to Refinance - The Bills.com Blog
Bills.com Blog > Mortgage Questions > When to Refinance
When to Refinance
Thursday, May 17, 2007
Question: I have owned one house for almost 6years and I haven't refinanced... and now i wanted to refinace my house and try to pull out my home equity to renovate my house. My question is is this a good idea? How does home equity works??? Please answer me.. im getting confused
Answer: That is a good question, and an important one since your home is most likely your number one asset.Home equity is the value between what your home is worth (in a sale, or an estimate of this determined by an appraisal) and the amount you owe on a mortgage(s). You can frequently 'tap' that value by either refinancing your home, and increasing the total size of your first mortgage, or by taking out a second mortgage, often called a Home Equity
Line of Credit (HELOC).
If you are looking to borrow money to perform renovations, a home loan is almost always your best route, since you get a low rate and the interest is tax deductible. The question will be whether you want to refi the whole loan, or to get at HELOC. The benefits of a refi are primarily that you can take out more money and that
If you are looking to borrow money to perform renovations, a home loan is almost always your best route, since you get a low rate and the interest is tax deductible. The question will be whether you want to refi the whole loan, or to get at HELOC. The benefits of a refi are primarily that you can take out more money and that
the rate is almost always lower than a HELOC. The benefit of a HELOC is that you can draw down the cash when you need it, giving you more flexibility, and if your current rate is locked in at a low rate... you don't need to adjust your first mortgage.
I hope the information provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
I hope the information provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
User Comments
Submit questions/comments about this post:
Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
Information provided by Bills.com is for general informational purposes only and is not be
construed as legal, financial, bankruptcy, tax or other professional advice. Should you
require more detailed information or specific professional advice tailored to your situation you
should consult an attorney, financial planner or tax advisor.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
© 2006 - 2009Bills.com LLC. All Rights Reserved.
1. Posted by Anthomy Hamilton on Saturday 26th May 2007 13:54
i want to refinace my home or something to help me get out of all the bills and have just one bill but i have only owned my house for one year is there anyway to do this