SAN DIEGO, Oct. 19, 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. Loan Love continues to provide excellent service to readers by providing them the latest in mortgage loan news with their updated articles and guide videos. One of their new featured articles, "Cash Out Refinance vs Home Equity Loan (Key Differences)" highlights both cash out refinance and home equity line of credit advantages and disadvantages by going into detail about how both loans function.
The Loan Love article begins by saying: "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."
Before deciding which of the two loan options is the better deal, there are a few things a loan borrower should know first. Namely, while both cash out refinance and home equity loans can help home owners tap into their home's equity, they differ in the way they "attach" themselves to the home's property. While a cash out refinance loan is simply an additional mortgage loan that will replace a homeowner's previous loan, a home equity loan is a loan that will be taken out and added on top of a current mortgage loan. This means that those who choose a home equity loan will be faced with having to pay additional loan fees alongside other monthly mortgage loan payments.
The article continues by analyzing the advantages of both: "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."
There are a number of things that should be considered before choosing which, if either, of these loans would be the best option. Loan Love explains some of these elements in their guide and end 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." For more information on the advantages of home equity line of credit, please visit LoanLove.com for the full guide.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, firstname.lastname@example.org
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