Custom Search

Shopping Home Equity Loan Rates

If you have been in your home for a number of years and you have established some equity, you may be considering liquidating some of that equity. A great way to do this would be to go with a Home Equity Loan.

A home equity loan allows for you to borrow oou have established in your home through appreciation and monthly mortgage payments without having to touchff of the equity y your first mortgage.

This is why a home equity loan can also be known as a second mortgage. But before you go and start signing applications, shop around so you can find the best home equity loan rate out there.

There are two types of home equity loans on the market that you have to choose from. The first one is your standard home equity loan with a fixed rate, which of course, is based on prime. This loan you receive in a lump sum and begin to make monthly payments upon it immediately.

The second type of loan is the home equity credit line. This one, as its name implies comes in the form of a line of credit. The home equity line of credit has a rate that is variable, which means it will fluctuate with the prime rate. Many of them come with introductory rates for the first five or six months.

Once approved for a home equity line of credit, you will not receive it in the form of a lump sum. Instead you will receive it in the form of a check book giving you easy access to draw upon it in the amount you would like at your convenience. Once you do draw upon it, you will have to begin paying it back on a monthly basis. Normally in the form of interest only for the first ten years.

Suppose you were to receive a home equity line of credit in the amount of $25,000.00. If you only wanted to borrow $6000.00, than all you would have to do is write out one of the check’s the lender sent you and deposit it into your checking account. Your payment would than be based on the $6000.00 you borrowed from your line.

Keep in mind, home equity credit lines do come with a rate that is variable, and that rate is based on prime. So, if the prime rate goes up, the rate on your home equity credit line will go up as well.

On the other hand, if the prime rate goes down, than the rate on your home equity credit line will go down.

Mortgage companies are very competitive, so whichever home equity loan you decide to go with, it would be in your best interest to shop around so that you may compare rates.

After allowing for a few loan officers to assess your situation and offer you a rate and product, base your decision on the rate and product that best fits your needs and budget.

11 comments:

Handy Saputra said...

Good resource! With the constant change in the home equity markets, good up to date resources are essential.

Home Loan, Mortgage Articles, Resources and Information

Anonymous said...

Hello. This post is likeable, and your blog is very interesting, congratulations :-). I will add in my blogroll =). If possible gives a last there on my blog, it is about the Home Broker, I hope you enjoy. The address is http://home-broker-brasil.blogspot.com. A hug.

Sudipta Das said...

I am currently living with my grandmother because my high school is down the street from her house, but my mother is my legal guardian. I am so thinking about that how I am going to finance myself for college. My mother’s income is not enough and I can get a good amount of financial aid but my grandmother has a larger income and I may not be able to get any by using her address. What should I do now? Please help me.
__________________
grants for women

Anonymous said...

cash advance loans offer financial assistance to deal with short term financial crisis. The terms and conditions are flexible and can be sourced from lenders based in the physical as well as online market.
Visit:http://www.cashloanservices.co.uk

Unknown said...

cash advance loans offer financial assistance to deal with short term financial crisis. The terms and conditions are flexible and can be sourced from lenders based in the physical as well as online market.
Visit:http://www.cashloanservices.co.uk

Anonymous said...

Payday loans are best financial help extended quickly. These are instant remedy that solves short term financial problems easily. payday loans don’t involve lengthy and time consuming formalities at all.
Visit: http://www.easyloans4uk.co.uk/

Anonymous said...

Easy payday online can be sourced from online lenders. You can access the loans without facing too many problems. The amount gets transferred in to your bank account once you have fulfilled the details.
Visit: http://www.easycashadvancepaydayloans.com/

Anonymous said...

If you need payday loans instantly then Instant-Payday-Loans-Online may be the right answer. Instant-Payday-Loans-Online is specialized in providing perfect finance solutions for times when you need a little extra cash for unexpected bills.

Anonymous said...

Thanks for the info, you can also find Government Grants here,
or Free Grant Kit here,
Free Grant Kit Grant Kit

Unknown said...
This comment has been removed by the author.
Unknown said...

Good resource! With the constant change in the home equity markets, good up to date resources are essential.

unsecured bad credit loan

Custom Search

Enter your email address:

Delivered by FeedBurner

About Me

My photo
Welcome to my Blogs.I'm provide sufficient great articles information,tips low-cost,frequently asked questions and guide to buying.Health Insurance,Life Insurance,Home Mortgage Rate,Home Equity Loan,Home Refinance,HELOC and Home Equity Poor Credit.Nice to meet you.