Home Equity Loans

Looking for a home equity loan?  Compare home equity rates and loans to find the right one for you.  Use this simple online service to learn about current mortgage rates that can help finance your goals.  Get mortgage home equity quotes from a loan company that will work for you.  I can help!  Equity home loans provide you the flexibility you need.  Take control and find out what will work for you.  Contact me or use this site to help you navigate through the home equity mortgage and loan process.

What is a home equity credit line?

Home equity lines of credit require homeowners to use their home as collateral for the loan.  These lines of credit may provide you with large amounts of cash at comparatively low interest rates. Today, home equity credit lines have become a popular source of consumer credit.  A home equity credit line might be able to give you the extra cushion you need to get through a tight spot or a boost toward a dream vacation or a home improvement that you deserve.

Your creditworthiness and outstanding debts are the factors used to determine how much you can borrow for a home equity credit line.  In many cases, lenders will allow as much as 85% of the appraised value of a home, minus the amount you still owe on your first mortgage.  Access to this credit line is done through credit cards, checks or both.

Facts About Home Equity Credit Lines

• Often home equity credit lines provide you with certain tax advantages that are many times unavailable to most kinds of lines.  However, you should check with your tax advisor for exact details referring to your home equity credit line.

• There are two types of rates for home equity credit lines.  Fixed rates and variable rate are the two main types.  Variable rates offer low monthly payments at the start of the credit line, then over time rise to much higher rates.  Fixed rates are sometimes available.  These rates may initially be higher than the beginning portion of the variable rate plan.  However, fixed rates do provide constant stable monthly payments over the duration of the credit line.

• Many times there are minimum and maximum withdrawal requirements.

• Home equity credit line lenders must disclose information on any variable rates, annual percentage rate (APR), payment terms, and opening/use charges of an account.  This is a requirement of the Federal Truth in Lending Act that protects and informs borrowers.  Be sure to look into all your options before moving forward.

• Repayment terms need to be acknowledged.  It is important to find out the guidelines for paying back the home equity credit line.  Sometimes there are penalties, default consequences, and late fees that you should be aware of before taking on the line of credit.

• Fees and expenses are part of the acquisition process of a home credit line, such as application fees, title search, appraisal, points, and discounted interest rates.  Sometimes there are “continuing costs” that are paid throughout the life of the loan or credit line.  It is important to read the plan before signing.

Home Equity Credit Line – Interest Rate Terms

• Periodic Cap – limit on interest rate which change at different time intervals

• Lifetime Cap – limit on interest rate which change throughout the loan period

• Index – prime rate used by lenders to decide how much to raise or lower interest rates

• Margin – amount added to the index that establishes the interest charged

• Discounted Interest Rate – unusually low rate lasting for a short period at the start of the loan

• True Market Level – index plus margin