Second Mortgage - Home Equity Vs Refinance

Why you should have a second mortgage or home equity line of credit instead of refinancing?

Well ... You should not!

Why not?

1 second mortgages usually have an interest rant that is twice or even three times higher than the first mortgage. You can refinance instead and keep a very low rate. In the long term, only a new mortgage will cost money in interest charges.

According to home equity lines of creditspecifically for mortgage account executive (sales) with you to use it as a credit card to sell your home. They will try to convince you to use it again and again.

3 A loan refinance is better for the equity in your home. Few companies will make your home 100% of its value to refinance, without you, a second mortgage. You do not want to use 100% of the capital, because it means You no longer have that equityfall back in emergencies.

The 4 second mortgage and home equity lines of credit are designed for customer service (seller) with another tool available to put in another Board of influence in your pocket.

5 The equity is a good thing and should not be used to add unnecessary or impulse buys ons. If you do not need and there is a small chance that you can not afford, then buy a second mortgage.

Theonly reason that I would ever recommend a second mortgage or a home equity line of credit is in an emergency situation. Only when there is no other option and you must take out a loan would I recommend either one of these options.

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