? For those who have done a home equity loan

Im thinking of taking out a home equity loan to do some home improvements. Im curious to know from someone who has done this - does it make more sense to refi the house and cash out or take a separate loan? What are the advantages or disadvantages? Thanks!!

? For those who have done a home equity loan

I'm curious as well!!

? For those who have done a home equity loan

I don't know the full answer to your question, but with a home equity loan, you basically have a checking account set up with the loan funds. You use as much as you want and your payments are based on the amount you have used - if you don't use any of the money, you don't have any payments (but I think some loans might require a minimum amount to be used within a certain time frame). You can also opt to make interest only payments for a certain period of time. The interest rate is adjustable (fluctuates with the prime rate, usually). A refi of you mortgage might make sense if you currently have a higher interst rate than you will get with a refi - but that also depends on how long you plan on staying in your house - I think the fees associated with a refi are considerably higher than with a home equity loan. But, you can also choose a fixed rate on a refi, so you will always know what your payment will be. Those are just some of the highlights of each. Not sure if there are other features you should be considering.

Re: ? For those who have done a home equity loan

Re: ? For those who have done a home equity loan

I would go over costs and payments associated with both options. Also be sure to not refinance and re-start at 30 year for example.

We had done a home equity fixed rate loan with Teachers Federal Credit Union for which there was no closing costs and only expense was appraisal.

Re: ? For those who have done a home equity loan