Return to article: How to Deduct Home Equity Loan Interest
on 11/22/2005 Cash Out Plans - Refi vs EquityWhen you decide whether to do the cash-out refinancing option, keep in mind that:1. You have to pay closing costs when you refinance your loan;2. You don't have to pay closing costs for a home equity loan.3. Closing costs can amount to hundreds, even thousands of dollars. If your current mortgage is at a lower interest rate than you could get now by refinancing, it's probably better to get a home equity loan. Private Mortgage Insurance:You'll have to pay private mortgage insurance if you end up borrowing more than 80 percent of your home's value. It might be cheaper to take out a home equity loan.
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