Home Equity Lines of Credit, Second Mortgages, and Refinancing Mania
In This Chapter
• Tapping home equity for additional cash
• Serial refinancing grows more popular
• The hidden costs of no-cost refinancing
• When a second mortgage makes sense
As housing prices rise, owners are looking to take advantage of the equity in their homes. Refinancing, once advised only if interest rates dropped a full two percent, now has become routine with much more minor rate reductions. A home equity line of credit (HELOC) is now used for many purposes. As we discussed in Chapter 15, a HELOC is sometimes utilized as a piggyback loan in order to increase a buyer’s down payment and avoid private mortgage insurance. Other owners take out a HELOC to help ...