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Which is better, a cash-out refinance or a second mortgage?

by IGoodwin from Corvallis, Oregon. Mar 20th 2013 Reply


Linda Mckenzie (TheInvestorsAlternative)
#24 ranked lender in Tennessee - 3 contributions

If you can get a traditional 2nd mortgage from a lender with reasonable rates, that's what I would do. The closing costs should be much less that way; especially if the rate you already have on the first mortgage is pretty reasonable.

Mar 20th 2013
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Franco Manueli (Franco)
#32 ranked lender in Nevada - 5 contributions

We would have to run scenario's for both options to see which is less of a monthly cost overall, in addition to the cost of each type of loan. Then we can compare them and find the best option for you. My office is located in Las Vegas near the 215 and Eastern Avenue. We have been in business for over 26 years. Our average time from application to closing is 2.5 weeks on all programs. If you are interested in having us run both of these scenarios, please call us at 702-420-2250 and we can get that to you in under (1) hour.

Mar 20th 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

That depends on how much you are cashing out. What the value of the home is currently , what the current mortgage amount is. Need alot more info to answer this correctly. www.HOMEMORTGAGEXPERT.COM Peter Savino

Mar 20th 2013
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Randy Free (rfree@opesadvisors.com)
#20 ranked lender in Oregon - 51 contributions

Although you may very well be able to obtain a very low cost Home Equity Line of Credit, the interest rate will be variable, and may rise in the future. If you opt to take the fixed-rate option on a 2nd mortgage, then the interest rate will be higher than just one first-lien loan that you would receive if you did a cash-out transaction. The best answer is really based on the details of your situation, and is worth a discussion with a mortgage professional. With no obligation or upfront cost, I would be happy to discuss your options with you. I will show you different interest rate/fee combinations, and the various loan programs available to you, so that you can make an informed decision. Note: We are a west coast direct lender mortgage bank with local "in-house" document preparation and underwriting. Please contact Randy Free (NMLS# 283930) at (541) 984-5428 with Opes Advisors (NMLS# 235584) 4710 Village Plaza Lp Ste 210, Eugene, OR 97401

Mar 20th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

A home equity loan will be the more cost effective way to go. However, there are interest rate risks associated with them because of the fact that the interest rates on this product are NOT fixed. When rates begin to rise again, you will feel the pain of the higher payments. If you do a cash out refi you will incur higher costs bit you will be locking into a record low rate that will not change regardless of how high rates may go in the future.

Mar 20th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,970 contributions

We dont hsve enough informstion. But I am a fan of a long term cash out refinance if you need to streach the payments out as long as possible, and a fan of short term home equity loans of you think you can pay it off if just a few years.

Mar 21st 2013
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Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

a traditional 2nd mortgage from a lender with reasonable rates, that's what I would do. The closing costs should be much less that way. Andrew

Mar 21st 2013
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Chip Streater (TarheelChip)
#4 ranked lender in North Carolina - 6 contributions

Generic Answer due to limited information: Short term the 2nd mortgage. Long term will be the cash-out 1st mortgage.

Mar 21st 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

To know for sure we would have to get more info behind what you want to do with the money and what your future plans are to answer this correctly. Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation.Ask for Michelle or Benny We will find the Best Mortgage Option to suit your needs!You can check us out at www.BestMortgageOption.com

Mar 21st 2013
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George Dokos (georgedokos@movementmortgage)
#57 ranked lender in Virginia - 25 contributions

Call me to go over your options for a Cash Out Refi.

Mar 21st 2013
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Jason Robinson (CFIsupport)
#58 ranked lender in Georgia - 106 contributions

If you're 1st mortgage is under 4% AND if you can afford to pay your 2nd mortgage off/or sell your home in 5 years, then a 2nd is a good option. If not stick with a 1st mortgage.

Mar 22nd 2013
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