ing a loan is simply the process of paying off your current loan with a new loan plan, which has a lower interest rate.
How can you negotiate to get the best borrowing rate? First, it starts with a strong credit score. You can achieve this by paying your bills on time, cutting back on borrowing and maintaining a low loan balance by as much as 30% of your limit.
Moreover, by using the equity of your home in refinancing the existing loan, you gain two significant advantages. One, because you made your home the collateral, you will be able to secure a bigger loan, and second, your interest fees are tax deductible.
Which of the two types of refinancing should you consider? A home equity line of credit is a form of revolving credit, wherein your credit limits are the maximum amount you are entitled to borrow at any one time.
A second mortgage closed-end loan, on the other hand is a loan you where you receive all the funds once the loan contract has been signed. You repay the loan defined by a set amount over a fixed period of time.
You can make a better decision on which type of credit to choose by first gathering all the information you have...
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