Home Equity Loan Rate
Home Equity Loan Rate
Your home's value grows enormously every year, so you're
sitting on a lot of equity. What's the best use of this source of
wealth? Home equity represents a valuable appreciating asset and
emergency borrowing capacity.
Home equity loan rate is the difference between how much
the home is worth and how much you owe on the mortgage
A home equity loan (or line of credit) is a second mortgage that
lets you turn equity into cash, allowing you to spend it on home
improvements, debt consolidation, Consolidate Your Debts, Improve
or Remodel Your Home, college education or other expenses. Perform
a comparison of home equity loan rate and get cash quickly at
reasonable interest rates by using your home as collateral.
Home equity loan are generally repayable over 15 years where as
other types of debt tend to have a shorter repayment period. As a
result, the total amount of interest paid may be higher with home
equity loans. However, the interest rates on a home equity loan,
including origination fees, tend to be significantly lower than
other consumer debt.
The current home equity loan rates are some of the best it
has ever been. Earlier a variable rate was a good option for a
home equity loan rate. However, in the current economic
climate, most professionals will recommend a fixed rate loan.
Each lender has its own qualification and loan term guidelines but
generally this is a credit score driven loan program. You need to
have a certain credit score to qualify for the loan, it also
determines the maximum loan amount you may receive as cash in
When it comes to a property appraisal, home equity loan lenders do
use the purchase price of your home as the value. A recent tax
assessment, simple drive-by appraisal, or automated value model (avm)
can be used (if applicable). An avm is a computer generated
assessment of your home's value which is based on recent home
sales of comparable houses in your neighborhood.
If you are considering a home equity loan rate compare
multiple lenders and their rates against each other to get the
best mortgage rates and information on their specific
requirements. You will have the option of comparing their rates
before submitting your personal information.
Each equity lender will provide you with free, no obligation
home equity loan rate from which you can then choose the best
offer. It's that simple! Loan guidelines and rates vary from
lender to lender so it is a good idea to look around to increase
your chances of getting the best deal available to you