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ABOUT THE AUTHOR
PLEASE VISIT MY SITE
HTTP://INSURANCE.JIMDO.COM
Fatima graduated with a Bachelor's degree in Economics from ColumbiaUniversity and received a Masters in Economics from Singapore NationalUniversity. Fatima comes from a political background, her father Mir MurtazaBhutto - an elected member of Pakistan's parliament - was assassinated bystate police in 1996. His sister, Benazir Bhutto, was Prime Minister at thetime of his killing. Fatima is the author of two books, understanding thefinancial system published when she was 15 years old and basics of debtmanagement. Both were published by Oxford University Press.Fatima currently writes a weekly column for Pakistan's largest Urdudaily newspaper, Daily Jang, and its English sister paper, The NewsInternational. Recently She has completed her MBA in Finance from HarvardUniversity in 2006. Her diary from Tehran is the second the papersprinted; Fatima also wrote a weekly diary from Lebanon .
 
Difference Between A Cash Out MortgageAnd A Home Equity Loan?FATIMA BHUTTOWhen you need the cash out of the equityof your home you may wonder which oneis better for you - a cash out mortgage ora home equity loan. The truth is that bothhave their advantages - but probably onewill be better for your situation than theother. This will mean that you need toknow a little about each in order to makeup your mind. Here are some differencesbetween the two.A cash out mortgage will involverefinancing your first mortgage. Thiscould be a great way to go, especially if you can get interest rates on therefinance that are at least one percent(two percent is to be preferred) lowerthan your present mortgage rates. So not
 
only could you get the equity you want,but also you will save thousands of dollarsby getting better interest rates, too. You get the equity you want in a lumpsum when your cash out mortgage isapproved. All you need to do is torefinance for the amount of the mortgagethat is still outstanding, and add theamount of cash you want from yourequity. You will want to watch and makesure that you do not refinance for anamount equal to 80% of the value of yourhouse - that includes the equity, as well. The reason for this is simple, you want tomake sure that 20% of the value of yourhome is left intact so that you do notneed to pay the Private MortgageInsurance. This could add thousands of dollars each year to your payments.
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