Whats the Best Home Equity Refi Rate?
Home Equity Refinance Benefits Lets first take a moment to define what home equity is. According to wikipedia, Home equity is the market value of a homeowner’s unencumbered interest in their real property–that is, the difference between the home’s fair market value and the outstanding balance of all liens on the property. In other words, it is the value of your home minus any balance on the mortgage. For example, lets say the market value of your home is $250,000 and you still owe $80,000 on your mortgage. The difference is $170,000. That is the amount you would be able to borrow if you were to do a home equity refinance. Usually when a homeowner wants to make expensive home improvements or even consolidate their debt, they will choose to get a home equity refinance. In this situation, your home is the collateral for the loan. This means your rate will be lower than other loan options. Thats another reason this type of loan is so popular. Usually the interest rates are so low that peo
