Hello Everyone,

Just wanted to find out the difference between refinancing a mortgage versus getting home equity (HELOCs) ?

I think in both you get more money right?

thanks.

Refinancing is redoing your Mortgage which means getting a new mortgage with most probably a different rate(usually lower) up to 80% value of the Home. This is usually done to take advantage of the lower current interest rates to save on the interest cost of the loan. Also there may be a penalty involved when you break your existing Mortgage. So it is important to do the math to find out if you really make sense.

HELOC is just drawing some money out of the Equity you built on the house. HELOC is also available only up to 80% of the Value of the Home minus your existing mortgage and HELOC part itself should not be exceeding 65% of the value of the home. When you take a HELOC you are not touching your existing mortgage..

Hope it helps


Rajesh Thomas
Mortgage Agent
Northwood Mortgage Ltd.
Broker Lic 10349
Phone: 4165514428
Cell: 4167885304
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