· A mortgage and a home equity loan are different types of debts using your home as collateral. If you don’t make payments, the bank has the right.
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Refinancing is when you take an existing debt and replace it with a different debt. For example, if you signed up for a personal loan with a 15% APR but then you find another lender willing to give you a loan for 10% APR. You can refinance your loan by taking out more funds at 10%.
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