Linda asks…
Where can I find the best mortgage rate for refinancing?
I am not sure whether to refinance with debt consolidation, cash out or a home equity loan or line of credit.
answers:
Hi there,
I hope yo havent conta ted the gentleman that seems to live overseas, and doesnt really have the concept of the english language down pact yet… Probably not your best bet…
Looks like you basically are in need of $cash$ to obviously pay down some debts… (based on your question)
So to keep it short and simple, out of the three options that you have sited, two of them are the same thing… A cash out refinance is the same as a debt consolidation refinance… A home ewuity line of credit on the other hand is a completely different story…
A home equity line of credit (HELOC) is a quick and easy way to get money out of a property… However, they are one of the worst debts for any person to carry…
Large banks will push these programs on customers for one simple reason.. They make double the interet!!!
A HELOC is basically a giant credit card secured against your home.. It shows on your credit as a “Revolving debt” rather then a “real estate debt” like a mortgage…
A “revolving debt” is the smae as a credit card, or charge card at a retail store… They are bad for your credit if you carry high balances… The average HELOC is over $20k, so your credit is sure to decrease by using a HELOC…
This is also why you always see commercials and billboards promoting HELOC’s.. They say low to no costs, etc. There is a reason they want to give you these loans for free… They make double the intere3st because a HELOC IS COMPOUNDED INTEREST (same as a credit card)… (not like simple interest on a mortgage or car loan)
So, if you need cash to pay debts, home improvemets, etc. I always suggest to refinance the mortgage and take out what you need…
I would be happy to assist you with any further questions, or even help you with the loan process if need be.. .I work with providential Bancorp, we are a nationwide mortgage lender…
Feel free to call or email me at any time!!
Jason Fry
Licensed Mortgage Banker
Providential Bancorp
jasonf@providential.com
312-264-6448
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