Cash Out Refinance Vs. Home Equity Loan Guide Available At

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A new guide from Loan Love helps borrowers determine which option is right for them. is a borrower advice website that provides detailed insights into the mortgage industry in an easy to understand and entertaining way. The team at 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. Loan borrowers can be assured they are getting the most current news in the mortgage world with Loan Love’s guide videos and articles as shown in their newest featured article “Cash Out Refinance vs Home Equity Loan (Key Differences).” This new article guide highlights the cash out refi vs heloc debate by citing the advantages and disadvantages when working with either loan.

The Loan Love loan guide 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 goes on to explain that the one of the biggest advantages of a cash out refi is that the interest rates are usually lower. This is because it is the primary loan on the home. Borrowers should shop for a refinance in the same way they would any other mortgage. They will have access to the same low rates as those who are buying homes. On the other hand, the biggest advantage of home equity loans is that they have no closing costs. This is the opposite of the refi, which may come with pricey closing costs (usually the same costs which are associated with normal mortgages) which is actually the biggest con of cash out refinances. The zero closing costs of home equity loans may translate to hundreds or even thousands of dollars saved.

The article goes on to say: “Now, that said, there are a couple of common sense elements to take into consideration. First, if you can’t afford a monthly home equity payment on top of your existing monthly mortgage payment, a home equity loan is not for you. What’s more, unless you really, really need the money, a refi loan typically doesn’t make sense if it means you need to pay a higher interest rate than the rate on your current mortgage. Likewise, if you don’t have plans to stay in your home for several years, paying all those closing costs that are associated with a refi loan may not make sense either. And if you’ve been paying on your home for a long time – say, 20 years of a 30-year mortgage – it may not make sense to refinance either, since you’d be at the point where your payments are being applied mostly to the principal (in plain English, you’d be building equity more quickly).”

In the end, determining which is the best option comes down to crunching the numbers. Loan Love advises their readers to take their time to shop around and take advantage of mortgage calculators to help them to make the best financial move.

For more information, please read the full guide on

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Kevin Blue
Loan Love
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