Q: I own a 4 unit place and live in one, rest are rented. Owe about $60,000 on it. Valued at 150,000. I want to get $80,000 to pay off a high interest rate loan and have some bucks to pay bills off. One bank says go for a home equity loan another says a refi is better. What gives?
A: Check the interest rates before making a decision. Usually refinancing will get you a better rate than a home equity loan. Also be sure to compare closing costs and points. Either way you will have to pay some closing costs, and go to a closing, just like when you originally bought your home. And keep in mind that they will do an appraisal (which will be one of the charges in your closing costs), and you will also have to pay title insurance again, and the closing companies document prep fee, credit report fee, etc. Shop around and have each finance company put the figures down on paper so you can take them home and take your time looking over the figures. Now is a great time to do this, as interest rates are very low