San Diego, CA (PRWEB) October 18, 2013
LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. To help loan borrowers get the latest scoop on mortgage loan news, the loan advice website is constantly providing readers with guide videos and articles when it comes to their mortgage inquiries. Their newest featured article continues to provide the most up to date and relevant information by providing cash out refinance advice for those who wish to get access to their home’s equity.
The article says: “Thinking of tapping into your home’s equity for a major expenditure like home renovations, college expenses or to pay back high-interest debts? Unsure whether a cash out refinance loan vs a home equity loan is a better choice for you? Fret no more, ‘cause we’re about to lay down a little pro-con information that will help you understand which is the right one for you. First thing to know: While both a refinance loan and a home equity loan will let you access your home’s equity, they differ in the way they “attach” themselves to your property. A refi loan is simply a brand-new mortgage that replaces your old mortgage, while a home equity loan is a loan in addition to your existing mortgage. That means that with a home equity loan, you’ll still be paying your regular mortgage and you’ll also need to pay the monthly payment for your home equity loan.”
The article then goes on to point out some of the bigger pros and cons of each loan type. For example, for those considering a cash out refinance, it would be wise to consider how long they plan to stay in their homes, as the high closing costs of these loans would mean that those planning to move in a few years would probably be paying more on these costs than the loan is worth. Those who are close to paying off their mortgages might also want to consider other options, as they will be building equity faster at this stage of their loan and may not want to hurt that by refinancing to a new mortgage.
While home equity loans do not have the associated closing costs that refinances have, they do have their cons as well. Since it is an additional loan, this means that those who opt for home equity loans will need to be able to pay the additional expenses on top of what they are already paying with their monthly mortgage payments. This will obviously make this a bad choice for those who are already struggling to keep up with their monthly payments.
The Loan Love article ends by saying: “Sadly – for you – what it usually comes down to is crunching the numbers. So shop around, take advantage of available calculators, and take the time to make sure the loan you choose is the smartest financial move for you.”
For more information on what to look for when choosing between cash out refinances and home equity loans, please visit LoanLove.com for the full article.