Online home equity loan rate
Shopping for a Home Equity Loan?
If you decide that the timing’s right for a home equity loan, ask your friends or family for recommendations of lenders. Then, comparison shop. Comparing loan plans will help you get a better deal.
Contact several lenders, not just the ones that send you mail, call you, or knock on your door. Talk with banks, savings and loans, credit unions, mortgage companies, and mortgage brokers. Remember, brokers don’t lend money: they help arrange loans.
Ask all the lenders you interview to explain the loan plans they have for you. If you don’t understand any loan terms and conditions, ask questions. They could mean higher costs. Knowing just the amount of the monthly payment or the interest rate is not enough. Pay close attention to fees, including: the application or loan processing fee, origination or underwriting fee, lender or funding fee, appraisal fee, document preparation and recording fees, and broker fees which may be quoted as points, origination fees, or interest rate add-on. If points and other fees are added to your loan amount, you’ll pay more to finance them.
Also ask for your credit score. Credit scoring is a system creditors use to help determine whether to give you credit. Information about you and your credit experiences – like your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts — is collected from your credit application and your credit report. Creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points — your credit score — helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when they’re due.
Negotiate with more than one lender. Don’t be afraid to make lenders and brokers compete for your business by letting them know that you’re shopping for the best deal. Ask each lender to lower the points, fees or the interest rate. And ask each to meet — or beat — the terms of the other lenders.
Before you sign, read the loan closing papers carefully. If the loan isn’t what you expected or wanted, don’t sign the loan. Either negotiate changes or walk away. You also generally have the right to cancel the deal for any reason — and without penalty — within three days after signing the loan papers. The lender must return any money you’ve paid to date.
Bankrate.com: Home equity Headlines
Information to help you smartly tap your home's equity.
Home equity can be used to buy car
31 Jul 2009 at 5:00am
Home equity products can be used to fund a car purchase. But there are risks for the homeowner.
Interest Rate Roundup
30 Jul 2009 at 5:00am
Here are the latest interest rates and commentary on five common consumer banking products from Bankrate.com's weekly national survey of large banks and thrifts.
Fixed-rate loan can cut risk
21 Jul 2009 at 5:00am
With interest rates likely to rise, locking into a fixed-rate loan may make sense right now.
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Bankrate.com: Today's Best Home Equity Loans Rates
Find the best home equity loan rates available today across the nation and in your state.
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Bankrate.com: Mortgages Headlines
Rates, analysis and mortgage-hunting tips
Winner or loser: Mortgage shopper
18 Sep 2009 at 5:00am
Rate changes by the Fed can affect consumers' budgets. Here's how the Fed's announcement affects mortgage shoppers and ARM holders.
Winner or loser: Home equity loans
18 Sep 2009 at 5:00am
Rate changes by the Fed can affect consumers' budgets. Here's how the Fed's announcement affects home equity loans and lines of credit.
Winner or loser: Auto loans
18 Sep 2009 at 5:00am
Rate changes by the Fed can affect consumers' budgets. Here's how the Fed's announcement affects auto loan rates.
Winner or loser: Credit cards
18 Sep 2009 at 5:00am
Rate changes by the Fed can affect consumers' budgets. Here's how the Fed's announcement affects credit card interest rates.
Debt forgiveness for homeowners?
30 Jul 2009 at 5:00am
Researchers say debt forgiveness is the only way to fix the housing crisis. But will it?
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