In other words, if you fail to pay back your loan, per your agreement, you could lose your home. So before examining the refinance vs. home equity debate any further, scrutinize your borrowing.
15/15 Arm An ARM offers a short-term fixed rate now in exchange for potentially higher rates later. A 5/1 ARM, for example, would have a fixed rate for 5. The 15/15 adjustable rate mortgage is the best choice if you want a loan with low initial payments and the benefits of both a fixed and an ARM product. Find out if a 15/15 ARM is the right loan for you.
Because a cash-out refinance requires you to take out a new first mortgage, closing costs are typically greater than with a home equity loan or HELOC. Recasting your home mortgage may cause you to owe money on your home for years longer than you had planned.