One thing you should consider is higher risk of a refinance mortgage loan. Your house is collateral for loan and if worse comes to worse you could end up losing your home. This is why it is a riskier loan to borrowers compared to unsecured loans such as a credit card balance. On other hand a refinance mortgage loan is a safer bet for lenders as a property means they will have a means of regaining their debt even if lenders are unable to continue monthly payments.

A refinance mortgage can get you access to cash. You can use money to pay off other debts, take a vacation or start a home improvement project. Without loan it may take several years to save up enough money to fulfill your dreams of a vacation or a new car.

A refinance home mortgage loan can free up capital from your home equity. While your home equity would remain unusable without loan, a refinance mortgage loan can help you to get cash for it and use it as you wish.

Interest rates will vary. It is also worth bearing in mind that some lenders are only interested in lending to people whom they regard as a 'safe risk' and they will be offered lower interest rates.

A personal loan could be best option for you if you are looking to borrowing money for between one and five years and is particularly ideal if you have other debts that you're looking to consolidate into one loan to reduce your overall monthly payments.

There are two basic types of personal loan, secured and unsecured.

With an unsecured personal loan you will normally make payments on a regular basis to lender who, if you should default on payments, would have to take legal action to obtain outstanding money.

With a secured personal loan, lender will ask for amount that you borrow to be 'secured' against a piece of your property, very often your home, which would become property of lender in case of default.

You may freely reprint this article provided author's biography remains intact: