A home equity loan is generally 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. A refinance typically means that you'll be paying off your existing first mortgage and replacing it with a new first mortgage.

Determining whether it's best to refinance or to obtain a home equity loan is very complicated and depends on many factors. You should consider contacting your tax advisor to determine what makes the most sense for you.

In general, a home equity loan should be considered:

·The lower the interest rate on your first mortgage is
·The shorter the remaining term on your first mortgage is
·The shorter the term is on the second mortgage you are considering
·The higher the rate and points on a new first mortgage
·The requirement of mortgage insurance for a new first mortgage

Comparing monthly payments of your existing first mortgage and a new home equity loan as opposed to a new first mortgage should help. You should also keep in mind the term of each of your loans, especially if monthly payment is not a significant issue for you.

A home equity line is a form of revolving credit in which your home serves as collateral. Because your home is likely to be your largest asset, you should consider a home equity line of credit for the purchase of major items such as education, home improvements, or medical bills and not for day-to-day expenses.

With a home equity line, you will be approved for a specific amount of credit—your credit limit—meaning the maximum amount you can borrow at any one time while you have the plan. Since you can get approved for an amount of credit now and not access the funds until you need them, a home equity line of credit is a good choice if you simply want the ability to access cash as you need it.

With our home equity line, you'll have the ability to access funds, up to the amount of your credit limit, by simply writing a check. A supply of checks will be sent to you after closing.

The monthly payment for a home equity loan is typically based on your daily balance and the daily interest rate.

If you are thinking about a home equity line of credit you also might want to consider a more traditional second mortgage loan. This type of loan provides you with a fixed amount of money repayable over a fixed period. Usually the payment schedule calls for equal payments that will pay off the entire loan within that time. You might consider a traditional second mortgage loan instead of a home equity line if, for example, you need a set amount for a specific purpose, such as an addition to your home.

You will be able to authenticate using either a text message to your cell phone that is on file or an email to your email address that is on file.