Is it better to refinance or take out a second mortgage?
We have spent a lot of our own money on remodeling our home we have had 5 yrs. We wanted to borrow so against home so we can finish it. Need about $50,000 to do so.
Answers | 2
There are several factors that would influence this decision. One, you need to look at your current 1st mortgage rate because that will be a concern with regards to refinancing. Would your proposed new rate be higher than what you have? Also consider closing costs; they will be higher with a full refinance than with an equity line (where many lenders will pay for all closing costs). On the flip side, an equity line has an adjustable rate so you need to ask yourself if you are comfortable with that. Payments are generally interest only on a HELOC as well.
Good luck with your decision and make sure to look at all of the pros and cons!