Home Equity Loan Refinance Credit

Interest rates for home equity and refinance loans in this year have hit near record lows. Millions of people across the country are taking advantage of the situation to get rid of old high interest loans. A home equity mortgage refinance loan can replace an old 1981 high interest 16.63% loan with a low 4.5% interest equity home loan. With a difference like that, monthly payments could drop by several hundred dollars and mean thousands or tens of thousands of dollars in savings on the rest of the loan period.

Equity home loan mortgage refinancing is used for many purposes in addition to making an old high interest loan a better loan with lower interest rates. People want to remodel their home to increase its value. They want to add on an addition to accommodate parents who want to move in with their grown children. Some just want to consolidate credit card high interest (now allowed up to 79.9%) into a very low rate.

Using the equity in a home is not a snap decision; many things should come under consideration. One of the first things to look at is your three free credit reports from www.annualcreditreport.com. Go over them to catch any errors or to find any attempts at identity theft or fraud. Your credit reports need to be as clean and as correct as possible so you can take advantage of low interest financial products. Having a clean credit history with no adverse entries will translate into a good to excellent credit score. Having that high credit score will allow you to obtain the best lowest interest equity home loan refinancing.

Equity available for homeowners consists of the value of the home that is more than what is currently owed on mortgages or other liens against that property. If you have enough equity in your home you could pay off a lot of high interest bills, end up with lower interest and have just one lower monthly payment. The biggest concern is that equity home loan mortgage refinancing puts the home at risk of loss if a foreclosure results from non-payment.

For most conscientious persons with good to excellent credit, using a current home equity loan to refinance credit or an old loan is a good move with good results. They pay their loan on time and in full. They are able to do many things that otherwise might not be possible with the money. There are tax deductions for the interest on a home equity loan for most taxpayers.

Home mortgages are taken out in tens of thousands or hundreds of thousands of dollars. Using the advantages of lower interest equity loans is good for most homeowners. With the large amount of cash being borrowed, it only makes common sense to find and use the lowest interest rate financial product available. Get rid of high interest credit balances, old loans or other bills with a current home equity loan. Research before you buy and only let the one lender you decide to use run your credit report.