The home equity loan and home equity line of credit are both an excellent way to come up with extra cash for items such as college tuition or unexpected medical expenses. With both types of loans, you are able to access a portion of the equity in your home at fantastic interest rates.
Now is a better time than ever to apply for a HELOC or a home equity loan because rates are extremely low. With either loan, there is no need to explain what you plan to do with you money or try to convince someone that you need this loan. You can even use this loan if you need funding for a small business.
Generally, home equity loans carry a higher interest rate when compared to the home equity line of credit. Most banks are charging around 2% higher for a home equity loan. Here are today’s current home equity line of credit and home equity loans according to bankrate.com. These rates apply to a loan that is for $30,000.
HELOC 5.14%
Home equity loan 7.63%
As you can see, the Home equity loan average is significantly higher than the line of credit because a line of credit is simply a line of credit that operates much like a credit card with a limit. An equity loan is an actual loan where you receive a lump sum of money at once.
For more information on the HELOC or the home equity loan, check out Google. Google is an excellent way to search for everything that you need.
Author: Mike Smitt
Comments on this entry are closed.