Zillow Advice: Refinance - Refinance or Home Equity Loan? http://www.zillow.com/advice-thread/Refinance-or-Home-Equity-Loan/196797/ Zillow Advice | Zillow Real Estate Pros to standard cash out ... http://www.zillow.com/advice-thread/Refinance-or-Home-Equity-Loan/196797/ Pros to standard cash out refi:<br/>&nbsp;&nbsp;&nbsp; Lowest payment<br/>&nbsp;&nbsp;&nbsp; Lowest interest<br/>&nbsp;&nbsp;&nbsp; Fixed, payment stays the same<br/>Cons<br/>&nbsp;&nbsp;&nbsp; Longer <a href="http://www.zillow.com/mortgage/">loan</a> term (typically 30 years)<br/>&nbsp;&nbsp;&nbsp; Closing Costs<br/><br/>Pros with getting HEL<br/>&nbsp;&nbsp;&nbsp; Usually none or very little closing cost<br/>&nbsp;&nbsp;&nbsp; Shorter term (5-15yrs)<br/>&nbsp;&nbsp;&nbsp; Less interest over the long run paid since the term is shorter<br/>&nbsp;Cons<br/>&nbsp;&nbsp;&nbsp; Harder to qualify for<br/>&nbsp;&nbsp;&nbsp; Higher payment (since the term is shorter)<br/>&nbsp;&nbsp;&nbsp; Could be adjustable and/or revolving (you want fixed rates)<br/><br/>If you can afford it, qualify for it, and get a fixed rate...I would try for the <a href="http://www.zillow.com/home-equity-loan/">Home Equity</a> Line first. If not, doing a regular Cash out refinance is fine too.<br/>However, if you have bad terms on your current <a href="http://www.zillow.com/mortgage/">mortgage</a>, you may just want to do a standard cash out refinance.<br/><br/>Really need some more info from you:<br/>&nbsp;&nbsp;&nbsp; Terms of current mortgage<br/>&nbsp;&nbsp;&nbsp; Payment goals (are looking for the absolute lowest payment)<br/>&nbsp;&nbsp;&nbsp; Is whatever you're doing with the 15k worth the closing cost? Sat, 07 Feb 2009 18:26:00 GMT http://www.zillow.com/advice-thread/Refinance-or-Home-Equity-Loan/196797/ 2009-02-07T18:26:00Z Joseph,Based on the loan ... http://www.zillow.com/advice-thread/Refinance-or-Home-Equity-Loan/196797/ Joseph,<br/><br/>Based on the <a href="http://www.zillow.com/mortgage/">loan</a> sizes that you desire you would be best served by going directly to a bank or credit union, whether it be a refinance or <a href="http://www.zillow.com/home-equity-loan/">home equity loan</a>. To answer your question specifically, the biggest question for you will be the time frame that you wish to carry your newly revised debt.<br/><br/>Speak with a local Certified <a href="http://www.zillow.com/mortgage/">Mortgage</a> Planning Specialist (CMPS) to best understand the proper approach to strategic equity so that you do not have face this decision down the road.<br/> Sat, 07 Feb 2009 18:21:00 GMT http://www.zillow.com/advice-thread/Refinance-or-Home-Equity-Loan/196797/ 2009-02-07T18:21:00Z Joe, that is a very low loan ... http://www.zillow.com/advice-thread/Refinance-or-Home-Equity-Loan/196797/ Joe, that is a very low <a href="http://www.zillow.com/mortgage/">loan</a> amount. My advice even though I don't have enough information to base a sound judgement upon would be to keep what you have. <br/><br/>You've probably had the loan for some time. If you got a Cash Ot refi you would start all over with your amorization. As you know, hardly any of your monthly payment goes toward reducing your balance in the first few years.<br/><br/>I suggest you go to your bank or any local bank in Apple Valley to apply for a HELOC. If you qualify, the Prime Index Rate is currently&nbsp;at 3.25% + whatever Margin the bank requires. Total should be under 5%. That's pretty cheap money, isn't it? Also, on a HELOC there are hardly any fees&nbsp;involved.<br/><br/>Have a friend that lives right by the lake up there. Beautiful! ... Best wishes. Sat, 07 Feb 2009 18:20:00 GMT http://www.zillow.com/advice-thread/Refinance-or-Home-Equity-Loan/196797/ 2009-02-07T18:20:00Z