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When rates are rising should you consider refinancing your mortgage loan? When rates are falling this is a moot question. Of course you should consider doing a refinance whether it be a fixed loan or home equity loan. When rates are rising you should, in my opinion, only consider refinancing if you want to take cash out of the equity in your home or if you feel now is the time to lock in a fixed rate.

If the market appears to be on a longer rise, locking in a fixed rate now can save you money in the future. Homeowners with adjustable rate mortgages can rise at the end of the initial low rate ARMs charge for the first twelve months. This currently means your rate can rise 2.75 points or so based on your original agreement. This translates to much higher payments than you currently are paying.

When refinancing, you should take the actual cost of refinancing into consideration. The amount of money you spend to arrange the financing takes time to recoup. Are you planning to live in your property long enough for this to be a wise decision now? If not, I would suggest looking for very low cost home equity loans. If you have a good working arrangement with your Banker, he can perhaps get your costs reduced on a home equity line of credit or loan. Just ask, it does not cost you money to investigate the possibilities.

If you are in a position that requires you have a fixed mortgage payment to maintain your peace of mind, then you should do it. Rates rise for a while, then remain stable for a while before they start coming down. A shift in the market attitude and consumer spending will have to happen for the Fed to reduce rates.

Dont refinance your loan if you dont have a good reason. Paying for a new vacation or luxury is not, in my opinion, a good thing to do with the proceeds of a loan when rates are rising. If you need to pay off debt, give it some thought before your proceed.

Ask questions, seek out your friends who are knowledgeable, talk to your bankers or investment people, just do something. You can reduce your mortgage payment or just get a fixed payment if that is your goal.

Nan is an Accountant and Real Estate Professional. Visit her

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For all of those times when you find yourself needing a larger loan but aren't sure exactly what sort of loan that you could get to cover your needs, you might want to stop and consider getting a home equity secured loan. A home equity secured loan is a loan that uses the equity that you've built up in your house by paying your mortgage as collateral to guarantee repayment of the loan, which can enable you to borrow a much larger amount while still paying lower interest rates than you might have thought yourself able to get.

It is usually possible to find a home equity secured loan regardless of your credit rating provided you've built up enough equity in your house. These loans are a great way to get the money that you need for your projects, for financing, or for debt consolidation... and if you've had problems with your credit in the past, you can even use the loan as a means to begin repairing your credit score.

Why Equity?

One of the main reasons why you might want to apply for a home equity secured loan is the ease with which equity can be used as collateral for loans of various sizes. Even individuals who have poor or bad credit can usually receive a loan provided that they have sufficient equity to act as collateral and secure the loan.

Loan Uses

Of course, a home equity secured loan can be used for a wide variety of purposes... you might be wanting to use the loan as a means to consolidate and reduce your debts, or perhaps you're wanting to do some home improvements and need a way to pay for the labor and materials. You might even be wanting to use your loan as an alternative means of financing a large purchase such as an automobile, boat, or motor home, or to use it as the method of paying for a vacation with your family. Borrowing against the equity that you've built up in your house or other real estate allows you to do the things that you've wanted to do but have been restricted by finances previously.

Credit Repair

Individuals who have poor or bad credit can benefit the most from a home equity secured loan... not only does it give them access to interest rates and loan amounts that they might otherwise not be able to get, but by using the loan to consolidate and eliminate old debts they can stop their outstanding debts from continuing to damage their credit while establishing new positive credit reports by making their loan payments on time. As the older negative reports begin to expire, the newer positive reports will begin to have a much larger effect on their credit score and can completely turn bad credit around.

Choosing the Right Loan

No matter the reason why you're wanting to apply for a home equity secured loan, it's important that you take the time to shop around at a variety of different lenders so that you can find the best interest rate and loan terms that you can. Consult a variety of local lenders and request offer quotes, and take a little bit of time to look for lenders online as well. Carefully compare all of the offers that you receive so that you'll be able to clearly determine the best loan for you and your needs.

Paul Rogers writes general finance and loan articles for the Loans UK Online website at http://www.loansukonline.co.uk