With a home equity loan, you’re taking out a loan on top of your mortgage, so you’ll likely have different interest rates: home equity loans typically have higher rates than mortgages.
If you do a refinance, on the other hand, you’re paying off the old mortgage and taking out a completely new one at today’s rates. Checking your credit score can help you learn which rates you’re likely to qualify for, and decide which option is best for you. It will also prepare for when a lender checks your credit report to determine your credit worthiness.
About the Author
Mark Kennan is a freelance writer specializing in finance-related topics. He has worked as a sports editor and published articles on a number of online outlets.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc. © 2014 ConsumerInfo.com, Inc. All rights