Home Equity Loan Rates

Written by Ingrid Chen
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Home equity loan rates are contingent upon a number of factors. Your credit history, current income, current debt and lender you apply with will all determine the kind of rate you will get. There are certain times when rates across the country drop simultaneously. You can keep up with this by checking online every once in a while.

If you are in the military, you may be eligible for special home equity loan rates. Check with a few lenders that deal specifically with military personnel, and see what they can do for you. When you take out a home equity loan, you are putting your home up for collateral against the loan. It's like insurance for the loan on the part of the lender. If you default, they can take your home.

Know Your Rates

One good thing about home equity loan rates is that lenders legally have to tell you about any and all interest rates and fees before you apply for the loan. This allows you to successfully compare lenders before choosing one. When you take out a loan, you will usually get to choose how long it is for. The lengths usually go in 12-month increments.

The shorter the span of your loan, the less you will end up paying in interest. This is why it is important to get the shortest loan possible without having to scrimp and save every month. Ask your lender to give you the various monthly payments based on different terms of length for your loan. It's a good idea to have your budget all figured out before you sit down for a consultation. Always know how much you are asking for and what you can afford per month.

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