SAN DIEGO, Oct. 16, 2013 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. To help loan borrowers get the latest scoop on mortgage loan news, the loan advice website is constantly providing readers with guide videos and articles when it comes to their mortgage inquiries. Their newest featured article titled "Cash Out Refinance vs Home Equity Loan (Key Differences)" addresses the benefits associated with both a cash out refinance loan and a home equity loan and catering to the needs of loan borrowers with cash out refinance advice.
Loan Love's new advice article begins by stating the following: "Thinking of tapping into your home's equity for a major expenditure like home renovations, college expenses or to pay back high-interest debts? Unsure whether a cash out refinance loan vs a home equity loan is a better choice for you? Fret no more, 'cause we're about to lay down a little pro-con information that will help you understand which is the right one for you."
What loan borrowers should first know when making a distinction between the two is that while both a home equity loan and a cash out refinance loan can help a home owner tap into their home's equity, how they differentiate themselves is the way they "attach" to the property of the home. For instance, a cash out refinance loan is simply a new mortgage loan that replaces a home owner's previous loan, and a home equity loan is simply a new loan taken out to be added on top of a current mortgage loan. In the end, with a home equity loan, borrowers will be paying more loan fees alongside their own monthly mortgage costs.
To be concise, the article goes straight to the point when comparing the benefits and drawbacks of each loan: "The biggest 'pro' in favor of a cash-out refi: Since a refi is a first-position mortgage – that is, it's the primary loan on your home – the interest rates are usually lower. Shopping for a refi is pretty much the same as shopping for any other mortgage, and you have access to the same low rates as someone who's buying a home. The biggest 'pro' favoring a home equity loan is also the biggest 'con' associated with a refinance loan: Home equity loans have no closing costs, and that can mean a savings of hundreds – even thousands – of dollars compared to a cash-out refinance loan, which typically comes with all the same closing costs as a purchase mortgage."
Before deciding on which loan option is best, loan borrowers should consider a few factors before going head on with either loan, advises the Loan Love article. To conclude their article, the article ends by saying: "Sadly – for you – what it usually comes down to is crunching the numbers. So shop around, take advantage of available calculators, and take the time to make sure the loan you choose is the smartest financial move for you." To learn more information on cash out refinance advice, please visit LoanLove.com.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, firstname.lastname@example.org
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