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?

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.

   

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