bergkamp asked:
So if you refinance, you get a fixed amount upfront, whereas home equity line offers more flexibility, I get that. Any other differences?
So if you refinance, you get a fixed amount upfront, whereas home equity line offers more flexibility, I get that. Any other differences?
In terms of interest, closing costs, max loan amounts, and speed with which the loan can be obtained? Also, is home equity loan and home equity line the same thing? WA state.
Christina
Joseph
Loans using your home’s value are best analyzed by determining the interest rate involved. Currently, I have NO mortgage at any sort of fixed rate, but I DO have a HELOC at less than 3%. I was fortunate to obtain such before the mortgage meltdown. The lender involved would LOVE to get rid of that to which they agreed. I’m happy with my agreement.
Comment by acermill — June 11, 2010 @ 6:54 pm
Mark
One thing to keep in mind is that with a home equity line your interest rate can change. One reason to hurry and get a loan now is to lock in low interest rates. If your interest rate can change, you haven’t accomplished that goal of locking in low interest rates.
The words, “home equity loan”, are not magic words, because what matters is the terms and conditions of the loan, such as whether the interest rate is constant over the long run. Some loans do, some don’t.
Comment by Dilbert — June 13, 2010 @ 12:08 am