San Diego, CA (PRWEB) October 16, 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 titled “Cash Out Refinance vs Home Equity Loan (Key Differences)” addresses both refinance and home equity line of credit advantages and disadvantages.
The Loan Love articles 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.”
The first thing that borrowers should know about these types of loans are that while both cash out refinance and home equity loans will allow home owners to access their home’s equity, the differ in the way that they “attach” themselves to the property. While the refinance loan is simply a new mortgage that replaces the homeowner’s old one, the home equity loan is a loan that is taken out in addition to the current mortgage loan. This means that those who choose an equity loan will, of course, be paying additional loan fees on top of their monthly mortgage payments.
The article explains: “The biggest “pro” in favor of a cash-out refi: Since a refi is a first-position mortgage – that is, it’s the primary loan on your home – the interest rates are usually lower. Shopping for a refi is pretty much the same as shopping for any other mortgage, and you have access to the same low rates as someone who’s buying a home. The biggest “pro” favoring a home equity loan is also the biggest “con” associated with a refinance loan: Home equity loans have no closing costs, and that can mean a savings of hundreds – even thousands – of dollars compared to a cash-out refinance loan, which typically comes with all the same closing costs as a purchase mortgage.”
There are a number of things that should be considered before choosing which, if either, of these loans would be the best option. Loan Love explains some of these elements in their guide and 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, please visit LoanLove.com for the full guide.