I know for a re-fi there are closing costs ( rip off ) any costs for equity ?
2006-10-19 06:52:19 · 4 answers · asked by ANDREWC 1 in Business & Finance ➔ Personal Finance
re-financing is like debt consolidation. you re-vamp your existing loan and get a better rate. with an equity loan, you borrow against the value of your home. you can get either a home equity loan or a home equity line of credit (HELOC). the difference depends on the lending institution. check out this one: www.1stsource.com
2006-10-19 07:01:10 · answer #1 · answered by centerstage 3 · 0⤊ 0⤋
Equity is the difference between the value of the property and the existing loan balance.
An equity loan is when you leave the existing loan in place and use an equity loan to have access to more money based on your equity inthe property. The interest on $100,000 of an equity loan is deductible for income tax purposes, anything above the is non-deductible interest.
A re-fi is where you take an existing loan and refinance it for a longer term or for a lower interest rate or a combination. This generally doesn't change your equity unless you refinance and take more equity out of your property.
2006-10-19 07:04:23 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
Depending on the bank, a home equity loan may have some closing costs. Of course, you will have to pay for an appraisal either way. There are 2 types of equity loans, an adjustable rate "line of credit" and a fixed "loan". With the line of credit you get a credit card and some checks, and it goes as a second lien on your house. With the fixed loan, you take out a set amount of money and it goes as a second lien on your house. The rates for either are higher than the rates would be to re-fi, that is why there are typically no closing costs. The bank has to make its money either way. General rule of thumb: refi only if you are getting a rate of 2 or more points lower than your current rate.
2006-10-19 07:03:09 · answer #3 · answered by M 2 · 0⤊ 0⤋
I believe all mortgage loans will have closing cost due to all business and people involved with the loan. A home equity would be a loan taken out by you to pay off other debts or for spending, you would use the amount your house has in equity. A home refinance loan would be to refinance the current amount of money you owe on your current loan to reduce your monthly payment. Either way http://www.nationwidebillrelief.com has little closing cost and great interest rates on all types of mortgage loans. Get a few quotes from some oh their lenders and save,
2006-10-19 13:04:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
the final difference is that with a private loan you're borrowing all the money at as quickly as and could be paying interest on the finished volume from day one. abode fairness loans enable you to entice the money on an as mandatory foundation and purely pay on the money you're utilising. they're the two liens on your actual sources and could be in first or 2d place. maximum fairness strains regulate the interest fee in keeping with a % over top and are subsequently resembling adjustable fee mortgages in terms of interest.
2016-10-02 11:26:42 · answer #5 · answered by ? 4 · 0⤊ 0⤋