Suppose your home was purchased a decade ago and at that time the interest rates were 5% on a 30-year fixed-rate mortgage.\u00a0<\/p>

Now, you can get a mortgage at an interest rate close to 3.0%. Resulting in you saving hundreds of dollars a month in your payment, and even more over the total cost of financing your home over the term of the loan.\u00a0<\/p>

In this case, a refinance would be to your advantage.<\/p>

Or, if you already have a low interest rate, and are looking for some extra cash to repair your roof, add a deck to your home, or pay for your child’s college education, a home equity loan could work out to be mighty attractive.<\/p>

Your credit score is the deciding factor on your ability to borrow through either refinancing or a home equity loan.\u00a0<\/p>

If the score is lower than when you originally purchased your home, then it might not be a good idea to refinance because it could possibly increase your interest rate.\u00a0<\/p>

Before going through the process of applying for either of these loans get your credit scores from the credit bureaus. Your score might affect your interest rate if they’re not all consistently over 740 so take advice from your potential lender.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t