Home Equity

A home equity loan is usually a second mortgage against your home, meaning it is a loan that you take out using your home as collateral without paying off your first mortgage. Determining whether it's best to refinance or to obtain a home equity loan depends on many factors, beginning with your personal financial situation.

Generally, a home equity loan should be considered:

After reviewing the interest rate on your existing mortgage
After reviewing the remaining term on your existing mortgage
The term is shorter the other loans you are considering
If the interest rate and points are higher on a new first mortgage
If there is a requirement of mortgage insurance for a new first mortgage.

A home equity loan can finance home improvements, credit card or debt consolidation, vacations, college tuition, medical expenses, vehicle or recreational vehicle purchase or second home - even give you extra cash for emergencies.