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I have some home repairs in the near future and am wondering whether it is best to go with home equity line of credit or just refinance on my mortgage. The home is a recent purchase so the mortgage rate would probably not be any lower. I’m leaning toward the line of credit because I also work for a company that is going thru some restructuring and figure having a line of credit available is some security if I find myself out of work. What is your vote… line of credit or refinance?

3 Thoughts on Mortgage Refinance or Home Equity?
  1. Reply
    Franco
    July 21, 2011 at 10:46 pm

    Chose according to interest rate.
    If the rates are the same, chose the mortgage as you have greater safety.

  2. Reply
    stan c
    July 21, 2011 at 11:35 pm

    I would go for a 2nd mortgage. If you go a for a 5 year term, you’ll know it would be paid off. If you go for a line of credit and you wind up out of work in a later date and borrow against it, you fell into a trap you can’t get out of.

  3. Reply
    JQT
    July 21, 2011 at 11:47 pm

    How much are you borrowing?

    If you exceed $ 100k, home equity loan interest would no longer be deductible. Then refinance might be a better choice. Otherwise, I would agree with the first answer. Go with the better interest rate.

    Best wishes.

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