Second Mortgage/home Equity Vs. Refinance
By Benjamin Ehinger, Thu Dec 8th
Why should you take out a second mortgage or a home equity lineof credit instead of refinancing?
Well,.........You Shouldn't!!
Why Not?
1.Second Mortgages usually have an interest rant that is twiceor even three times as high as your first mortgage rate. You canrefinance instead and keep a very low rate. In the long run asecond mortgage will just cost you money in interest charges. 2.Home equity lines of credit are designed for mortgage accountexecutives (salespeople) to sell you on using it like a creditcard attached to your home. They will try to convince you to useit over and over again. 3.A refinance loan is better for theequity in your home. Very few companies will refinance your homeat 100% of it's value without forcing you to take out a secondmortgage. You don't want to use 100% of your equity because thatmeans you no longer have that equity to fall back on inemergency situations. 4.Second Mortgages and Home Equity linesof credit are designed to provide account executives(salespeople) with another tool to sway you into putting anothercommission in their pocket. 5.Your equity is a precious thingand should not be used for unnecessary add ons or impulse buys.If you don't need it and there is even a slight chance you can'tafford it, then don't get a second mortgage to buy it.
The only reason that I would ever recommend a second mortgage ora home equity line of credit is in an emergency situation. Onlywhen there is no other option and you must take out a loan wouldI recommend either one of these options.
About the author:About the Author
Benjamin Ehinger has an extensive mortgage background and hasstudied the industry for many years. To learn more aboutRefinancing and Second Mortgages visit:http://bandcdriver.tripod.com/second-mortgage.htm
