San Diego, CA (PRWEB) October 26, 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. The Loan Love website continues to be progressive in their stance of helping loouran borrowers to understand the on going events in the mortgage industry with their featured videos and articles. The website recently posted a new guide that gives cash out refinance advice for those who want to make use of their home equity.
The new guide covers the differences between cash out refinances and home equity loans so that loan borrowers will be able to better decide which option is right for them. 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.”
So, while these two loans accomplish the same main purpose (allowing home loan borrowers to tap into the equity they have built in their home) they are very different in a number of important ways. This is why it is important for home loan borrowers to understand each type of loan so that they can compare each one to their situation and determine which one makes the most sense for them. For example, the article discuses the role that closing costs play when choosing a loan; while home equity loans do not have associated closing costs, those who opt for a cash out refi should expect to pay much the same costs that would be involved when closing a normal mortgage loan. This can be seen as a con that would make cash out refinances less desirable, however, as mentioned above, those who choose a home equity loan should be aware that they will need to pay for the new loan in addition to their current monthly mortgage payments – something that may not be an option for those who already struggle with their payments.
Clearly there are quite a few things that should be considered when choosing which loan option is the best. But even with all things considered the Loan Love article states: “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.”
To view the complete guide to cash out refinances and home equity loans, please visit LoanLove.com.