Question : What would be better, a home equity loan or refinance at lower rate to add on to my home?
I'm wanting to add on to my home but I've never used a home equity loan. I have used the refinance method where you borrow a little extra to add on. What would be the best now, with the way the economy is and the interest rates unstable?
- asked by BamaboynTN
All Answers:
Answer #1
home equailty lone
- answered by dawnsxlight
Answer #2
I think a home equity interest rate would behigher. But it would depend on how long you borrowthe $ for.
- answered by Steve V
Answer #3
why not do both!Seriously... you can refinance ata lower rate... lock it in, and maybe leveragesome of your equity at the same time.
- answered by stanleys_2001
Answer #4
Read how your interst is charged and any hiddenlines about credit rating and interest rates aswell. Fixed rate mortages are usually the best asARM are adjustable and can go to high in interestto ever pay.
- answered by bethbird1960
Answer #5
Just make sure whichever you choose to make sureit is a fixed rate. With the home equity, you canpay off or consolidate other bills and put itunder your home interest to take off at the end ofthe year with deductions. Refinancing at a lowerrate would be ideal
- answered by livn4themin
Answer #6
re-fi at lower rate,with cash out for add-on,ifyou can qualify...I heard equity lines were allfrozen ,without alot of media coverage,untill thebanks review write-downs...
- answered by $andman
Answer #7
Forget the economy and interest rates in general.The question is, what's best for you? Compare thetwo scenarios, overall costs of a refi verses thehome improvement loan. If you are lowering yourfirst mortgage rate at the same time you take cashout, usually that's the winner. I'd have to havedetails to make a call but it's your details Ineed, not the economy or who won the super bowl.If you need more info, send me an email.
- answered by Tony D
Answer #8
This depends on the conditions of the home loan.If one can make extra repayments without penaltythen the lower interest rate is better. The onlypositive of equity loan one can borrow up to theequity of the property ie if in the future oneneeds more money its easier to access the cashwithout having to refinance. The decision isdepends what one future plans are! The bigdownside of an equity loan is the temptation ofbeing to be able to get more cash on a whim.
- answered by phred01
Answer #9
Be frankly,It is gonna take a while to find theanswer for your question.Try the resource here forreference.
http://loan.goodhelper.info/car-loan-payment-calculator.html
- answered by REBECCA B
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