"dpb" wrote
wrote:
There is no substantive difference between an equity loand and a second
mortgage. Theoretically the amount of a equity loan is backed fully by
snip
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.
Correct and one added bit on refinancing. You have to still 'owe enough'
for it to be worth their time generally. I did some preliminary checks on
this and most do not want to refinance only what I owe (a little under 40K
now) for a lower rate than I have. Oh some nibbled at a slight reduction
'for now' but wanted lots of money up front and were 'variable rate' vice my
fixed. My rate isnt 'great' (7.50) but it is fixed for life. Variable rate
offers came in at 6.75 and 7.00. No thanks. Had I done that, I'd be
trapped now with the higher prices I bet.