However, you typically end up paying a higher interest rate for a home equity loan than for a mortgage.“It has to be that way because the lender is taking more risk,” says Foguth. “The home equity loan takes a second position to your mortgage. If you default, the lender who holds...
By comparison, the 7a program is just one loan and it can also be used for real estate. There are advantages and disadvantages with it, but in some cases you can get 100% financing (or higher) and it is also sometimes available as a 25 year fixed rate. ...