Home Equity Loan Interest Rates
Home equity loan interest rates tend to be lower than other types of loan interest rates, particularly if those loans are unsecured. A credit card is a type of unsecured loan. When you open a credit card, the only thing at stake is your good credit; since you don't have to put up a house or car as collateral against the loan, there's less of a guarantee that the credit card company will recoup the money it has lent you.
For this reason, the credit card company is likely to charge you much higher interest rates than you would enjoy with a home equity loan. It's a balancing act: the credit card company is willing to take a greater risk on you than the bank or brokerage, but they'll offset this risk by charging you more interest, thereby earning more money off of you as long as you continue to pay your bills.
Fixed Home Equity Loan Interest Rates
Clearly, if you own your home or condo and are in need of a loan, then taking out a home equity loan or opening a home equity line of credit is something you should consider. How do equity loans and equity lines differ? For starters, home equity loan interest rates are usually fixed. Even if you have 30 years to pay off the loan, the interest rate will always stay the same.
At 4MortgageRateQuotes.com, we've discovered that this type of fixed loan is a safe bet for borrowers who prize consistency. Your interest rate is apt to be slightly higher at first than it would be if you opened a HELOC, but you won't encounter any nasty surprises in the future. Find out what interest rates you qualify for by completing our simple online form today.