Pittsfield, MA -- (SBWIRE) -- 04/29/2013 -- Real-estate-yogi wants to share some suggestions about getting the lowest home equity line of credit interest rates on it, such as:
- Definition of HELOC
- Why HELOC?
- Comparison Shop
- Use it Wisely
Before looking for the Lowest Rate Home Equity Line of Credit, it’s wise to understand what one is. Getting a HELOC is different than a home equity loan. It’s like taking out a second mortgage, but it works like a huge credit card. The “credit card” is secured by the house. Once the HELOC is opened, a homeowner can borrow as much as he needs to, up to his limit, and he only has to pay interest on what he uses. Usually, HELOCs are given up to the amount of 80% of a house’s value.
Why Obtain a HELOC?
While thinking about the lowest home equity line of credit rates, know why it’s wise to get one. The way they work is this: There are two parts to them, a draw period and a repayment period. The draw period can be up to 10 years, allowing a homeowner to use as much as he needs. Generally, interest rates on HELOCs are lower and variable, and the amount a person wishes to pay each month is up to him. Home equity loans have a fixed interest rate and a specific amount due each month.
How To Get Home Equity Line Of Credit? Send Request To get HELOC Loan Approved Now
When someone wants the lowest interest rate home equity line of credit, he needs to shop around for it. When applying, be aware of fees that must be paid, such as appraiser’s costs and application fees. Start the search with one’s current lender to increase the likelihood of catching a discount. If the offer isn’t attractive, move on. Soon, the perfect offer will come up, and the HELOC will be secured.
Put a HELOC to Good Use
It’s great to find the lowest rate home equity line of credit; now it’s time to use it imaginatively. How about a vacation? Perhaps a renovation of an outdated kitchen would be nice. Maybe funding a start-up for a small business would be a good use for a HELOC. A HELOC can also be used as a bridge loan for purchasing a different house if the current one isn’t sold yet.
Real-estate-yogi.com located in Pittsfield, Massachusetts wants to see folks using their finances wisely, so it provides answers to real estate questions they have – for free. Dial 800-987-1397 for a free consultation.