Which would be better for us, taking out a home equity loan or refinancing?

My husband and I want to take about $15,000 to pay off debt and renovate our home, which we just purchased last July. Our current interest rate is 7.25% and we owe about 65k on our home that appraised at 100k. The problem is that our credit is not great and not well established. Which would be the best option for us, home equity loan or refinance?

An equity loan has to be repaid in one year or it either will be refinanced automatically by the bank or it will go into default if not paid in a year.

Better of refinancing if your credit is not horrible.

Chase has no money right now so it would be a horrible choice. Right now National City and Bank of America are the banks that have money to offer credit. I work in the Finance industry.

Home equity without a doubt. Way too many points (money) to pay to refinance. Also an expensive appraisal. I have had 2 banks offer to give a home equity loan for nothing but the interest they would get! No points and they pay for the appraisal. All the banks are doing it. Try the bank where you have your accounts first. Chase bank is hungry for that type of loan interest. Good luck.

Home Equity loan = seperate loan, additional payments

I would refinance.

student loan.