Home Equity Loan Refinancing
If you have lived in your home for more than two years, it has
probably appreciated which means that you have built up equity.
What is home equity? Home equity is the difference between the
value of your home and the amount of all that you owe on your
home. If your home has an appraised value of $200,000 and all of
the outstanding liens against it total $150,000 then your home
equity equals $50,000. Often times when a home has accumulated
value, the homeowner decides to take some of that value out in
cash. Sometimes the cash is used to pay off bills, for home
improvements or for a child's education. One of the best ways to
tap the money available from your property is to refinance it
with a home equity loan.
When considering a home equity loan, there are several steps you
should take to ensure you choose the refinancing package that is
right for you.