{"id":39770,"date":"2022-05-16T21:12:58","date_gmt":"2022-05-16T19:12:58","guid":{"rendered":"https:\/\/www.nordest.ca\/blogue\/?p=39770"},"modified":"2022-05-16T21:18:43","modified_gmt":"2022-05-16T19:18:43","slug":"line-of-credit-vs-refinance","status":"publish","type":"post","link":"https:\/\/www.nordest.ca\/blogue\/en\/line-of-credit-vs-refinance\/","title":{"rendered":"HELOC vs Refinancing vs Unsecured line of Credit: Which one is for you?\u00a0"},"content":{"rendered":"\n

Are you like me, and felt like spring would never arrive. I have a friend who goes fat biking every morning. Just last week, he sent me a picture of the trail he rides still covered in deep snow. The picture looked like it had been taken in the middle of February, but alas we are in the month of May. The forecast this week sees us hitting 20c for the first time since October 21st<\/sup>, 2021. <\/p>\n\n\n\n

Enough about the weather, spring is a time for cleaning, and maybe doing some home renovations, or even putting in a pool. <\/p>\n\n\n\n

Have you considered using some of your home equity to finance a project? <\/h2>\n\n\n\n

If so, let\u2019s compare a HELOC, short for Home Equity Line of Credit, an unsecured line of credit or simply refinancing your home.<\/p>\n\n\n\n

A HELOC is a revolving line of credit<\/a> using the equity in your home, which acts as security against the money borrowed. Think of a HELOC as a giant credit card.  <\/h3>\n\n\n\n

An unsecured line of credit is not guaranteed by any asset. Unsecured credit always comes with higher interest rates because it is riskier for lenders.<\/h3>\n\n\n\n

Refinancing your mortgage basically means that you are trading in your old mortgage for a new one, with a new balance. When you refinance your mortgage, your bank or lender pays off your old mortgage with the new one.<\/h3>\n\n\n\n

Which is the most advantageous? <\/h2>\n\n\n\n

Let\u2019s put it in a pool, and say our budget is $50,000. <\/p>\n\n\n\n