Home equity line of credit and Mortgages refinancing are two different kinds of loans you can obtain on your property. Mortgage refinancing is the first loan that you get to buy your home. You can decide to receive a second mortgage as a way to cover a part of acquiring your property or refinance to withdraw some of the equity of your property. It is crucial to know the differences between a home equity line of credit and mortgage refinancing before you determine which loan you will use.
The difference between a home equity loan and mortgage refinancing is that you receive a home equity loan after buying and accumulating equity in the property, while you obtain mortgage refinancing to be able to buy the property.
A home equity line of credit is a type of loan that enables the home owner to get a loan by using his property as collateral. Because homes are the biggest asset they have, home equity line of credit is used primarily for main expenditures such as home renovations, remodeling, medical bills, education, and others. This type of loan is getting more popular as property values rise, and buyers learn how they can control and manage their personal debt efficiently. (more…)