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When to Refinance - The Bills.com Blog
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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/
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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