Use a Home Equity Loan Instead of a First Mortgage Refinance
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Why Use a Home Equity Loan Instead of a First Mortgage Refinance?
There are a few reasons why you might use a home equity loan instead of refinancing your first mortgage:
- Your first mortgage rates and terms are excellent, or at least better than those you would receive if you refinanced today;
- You want to use your equity proceeds for a specific project for a relatively short period of time (less than 15 years);
- You do not want to incur the sometimes considerable expense of closing a new first mortgage loan and you can obtain a home equity loan for little or no closing cost;
- You need to cash out quickly and don't want to wait for a first mortgage closing.
Getting and closing a home equity loan can be inexpensive, fast, and simple, without all the documentation and added cost of refinancing a first mortgage loan.