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Hi, this is Robert Mangino. I'm with Mike Henry, Vice President of Dollar Bank
Residential Lending. And we're here to talk about refinancing with a mortgage
versus a home equity refinancing home. Mike, when should someone consider refinancing
with a home equity refinancing loan instead of a mortgage?
Well, typically a home equity loan that's used as a mortgage is a shorter term--ten or
fifteen years-- than your traditional thirty year fixed rate loan.
If you're comfortable making those payments, it's a great option. You save a lot
of money on closing costs
and if interest rates were to drop again,
it's a much easier decision to refinance because the rate's lower
and you don't have all the costs associated with it.
So there's all kind of scenarios that can work for it,
even a shorter term, if you plan on being in the house for a while but are still comfortable
with that payment,
you'll build equity faster
and pay off the loan sooner.
Thank you, Mike. For more information, contact a Dollar Bank mortgage expert at
1-800-344-LOAN
or visit dollarbank.com.