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You own a home in Matthews, NC or in Mt. Pleasant, SC and are faced with a big decision: should you refinance your home to pay for a new kitchen and bath or should you simply take out a home equity loan? Well, you do have some thinking to do, don't you? Let's take a look at the options and what could work best for you during these times.

A home equity loan or refinance the mortgage? Choices, choices! Good thing, though as both offer certain advantages:

A home equity loan could be ideal especially if you have plenty of equity already build up in your home. Most home equity loans are for a fixed rate, are tax deductible, and cost nothing when it comes to an application fee and closing costs.

A home refinance is essentially a new mortgage. You'll have to pay for the application fee and there will be closing costs involved. However, you could come away with a lower APR vs. your original mortgage and a rate lower than what you could receive with a home equity loan. In most cases a bank will allow you to borrow extra funds for maintenance and repairs; at closing you'll be handed a check covering the excess funds.

Should you decide upon a home equity loan, then going with a fixed rate if you plan on keeping the house for the long term makes sense. If you envision yourself fixing up the house and then placing it on the market, then a variable rate home equity loan makes more sense.

If you aren't certain just how much your work will be, you could elect to get a HELOC - home equity line of credit to only take out the funds that you need. You could be approved for a $50,000 HELOC, but only draw done $36,000. The remaining funds wouldn't be used and you'd only be responsible for paying off the smaller amount.

You can shop for a lender through your bank, with a credit union, even online. Rates will vary somewhat, but even a one eighth of a point difference can add up over the life of your loan. Online sites also are worth exploring for great deals such as Quicken and Lending Tree. You can find a lower rate and sometimes close with two business days. Some sites will sweeten their deals with a credit at a home improvement store waiting for you upon the successful closing of your loan.