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It is important to understand your different mortgage options and to make an educated decision. Colismo will help educate you in the options you have in choosing a loan program that is best for you whether you want to qualify to buy more home, get the lowest rate, or shorten your term.
The are 4 primary types of mortgage loans to choose from:
Mortgage Refinance
A mortgage refinance will lower the interest rate on your current mortgage, and also will allow you to use equity to pay off debt if you choose to do so. This is a very common choice among homeowners.
Second Mortgage
A second mortgage allows you to take out a second loan against your house, which can be used to pay for anything. Second mortgages tend to be used to pay off debt, because the rate on the loan is generally much lower than their debt interest rate.
Home Equity Loan
A home equity loan is taken out against your house. Similar to a personal loan, a home equity loan is a secured debt against your house that pulls from the equity that you have saved. Since home equity loans tend to have low interest rates, they are a good option for paying off high-interest debt.
Home Equity Line of Credit
A home equity line of credit is similar to a home equity loan, except that you are not obligated at any point to use the line. Whereas a home equity loan requires full repayment even if only a portion was needed, you are only required to repay the used portion of a home equity line of credit.
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