Anybody looking at equity loans as a means of borrowing would
be wise to compare the rates for equity loans, refinancing as
well as credit lines. This is because loans more often than
not come with either a prime rate, fixed or variable rate.
Refinancing is usually a better option than home equity loans
or credit lines when your equity has dropped below its market
value.

Refinancing extends some extra cash to the homeowner to spend
on his most pressing needs. It also offers a vehicle to help
recover the equity on the value of your home. Said another way,
refinancing helps to raise the equity on your home. So,
whether you want to consolidate your debts, buy new equipment,
pay school fees or remodel your home, home equity loans would
be your most likely option.

However if your desire is to improve your cashflow situation
during the next ten years, you might want to look at credit
lines. A credit line is a loan offered on a prime rate of
interest. It usually comes with some conditions, but is mostly
available whenever you may need it. Most providers of credit
lines do their own checks when the borrower applies for a
credit line facility.

As we have seen form the above, whichever type of loan you
choose eventaully depends on your specific needs. However
looking at what is available and understanding what each of
them can do for you, can only help you in choosing the most
appropriate solution for your situation, including getting
the best rates and repayment options.

So to recap. Refinancing lends itself better if you want to
increase the equity on your house, while home equity loans
may be best suited if you're thinking of consolidating your
debt. However if you're having cashflow problems or would
like to increase your access to cash in the forseeable
future, then you may want to think about getting yourself
a line of credit.