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dpb

wrote:
I am thinking about applying for a home equity line of credit ...

If anyone has done this could you please explain how this type of loan
works in comparison to a 2nd mortage or a refinance.
....

There is no substantive difference between an equity loand and a second
mortgage. Theoretically the amount of a equity loan is backed fully by
obtainable equity in the home in case of default, but that's surely been
demonstrated to not necessarily be so. Rates may be slightly lower
owing to the "secured" nature but that's not foregone conclusion and
costs also may or may not be comparable depending on the lender. In
today's market where 90% of mortgages are sold by the originating
institution there may be little or no advantage in returning to them--in
olden days where lenders held the paper it usually had a major influence.

Refinancing is simply replacing an existing mortgage w/ a new one,
hopefully w/ better terms than the original owing to lower market
interest rates at the time of refinancing vis a vis original, better
personal financial situation or somesuch. Origination fees may eat up
much of the perceived gain, however, unless one is careful in evaluating
the whole picture.

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