Home Equity Loan Rates

Current Home Equity Loan Rates and HELOC Rates

Review current home equity loan rates and HELOC rates for December 11, 2018. The lender table below enables you to shop home equity loan and HELOC interest rates and fees for leading lenders in your area. The table enables you to compare both financing options side-by-side so you can understand the difference in pricing for home equity loans and HELOCs.
Home equity loans usually have a fixed interest rate for a certain number of years while HELOCs usually have a low starting interest rate that increases after six months or a year. The loan amount for a home equity loan is fixed while you can drawdown and repay a HELOC an unlimited number of times.
The table enables you to compare the monthly payment for home equity loans and HELOCs and review important loan terms such as the length of any introductory period, the interest rate after the introductory period and the required draw for a HELOC. We recommend that you use the refine your search menu to review updated interest rates, monthly payments and terms based on your loan amount, combined loan-to-value ratio and other factors.
You can also compare financing options by loan type and length. You should contact multiple lenders to find the best home equity loan or HELOC terms including the lowest interest rates and fees.

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Current Home Equity Loan Rates and HELOC Rates in

Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Click here for more information on rates and product details.

Why Select a Home Equity Loan or HELOC

Only Access the Amount of Money You Need.

A home equity loan or HELOC enables you to access the specific amount of money you need as compared to a full refinance of your mortgage. A smaller loan amount means that your monthly payment and total interest expense over the life of the loan are lower with a home equity loan or HELOC.

Flexible Financing Option.

Most lenders impose relatively few limits on how borrowers use the proceeds from a home equity loan or HELOC. You can use the money from a home equity loan or HELOC for any number of reasons including to pay-off expensive credit card debt, for home improvements or even school tuition. Although most lenders want to understand how you plan on using your loan proceeds, a home equity loan or HELOC provides you significant flexibility on how you use the equity in your home.

Less Expensive and More Efficient than a Refinance.

A home equity loan or HELOC is less costly and time-consuming compared to alternate ways of tapping the equity in your home including a cash-out refinance. Transaction expenses and fees for a home equity loan or HELOC are typically less than the closing costs to refinance your mortgage because the loan amount is smaller. Additionally, the application and closing process for a home equity loan or HELOC are shorter than the time frame for a refinance. Please note that home equity loan rates and HELOC rates are typically higher than first mortgage rates but the loan amount is smaller so your total interest expense is lower.

Flexible Qualification Guidelines.

Lenders typically apply a higher borrower debt-to-income ratio for a home equity loan or HELOC than for a mortgage, which potentially enables you to borrower more money. For example, depending on multiple factors, the maximum debt-to-income ratio for a mortgage is typically 45% to 50% while the maximum debt-to-income ratio for a home equity loan or HELOC is usually 55% or possibly higher under certain circumstances. Using a higher debt-to-income ratio enables you to borrow more money.

Increased Borrowing Capacity.

With a home equity loan or HELOC, to determine what size loan you qualify for lenders primarily focus on the value of your home and the combined loan-to-value (CLTV) ratio of your first mortgage plus your home equity loan or HELOC. CLTV is the ratio of all mortgages against a property divided by the current fair market value of the property. In some cases the maximum CLTV ratio for a home equity loan or HELOC may be higher than the LTV ratio for a refinance. Applying a higher CLTV ratio enables you to access more equity in your home even though the loan amount for a home equity loan or HELOC is smaller. For example, if your home is valued at $100,000 and the lender uses a CLTV ratio of 85% for a home equity loan as compared to 80% for a mortgage refinance, you can tap $5,000 more of your equity with the home equity loan.

Use Your Home as a Bank.

In short, a home equity loan and especially a HELOC, are cost-effective ways to borrow money so they effectively enable you to use your property as a bank. If your property value has increased then you may be able to borrow a significant amount of proceeds. Additionally, because home equity loans and HELOCs are secured by your home, your interest rate is usually lower than other financing options such as personal loans or credit cards, which saves you money.

Why Borrowers Compare Home Equity Loan Rates and HELOC Rates on FREEandCLEAR

Save Money.

Comparing home equity loan rates and HELOC rates can save you thousands. Use our rate tables to find the lender offering the lowest rates and fees

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Review home equity loan rates and HELOC from leading lenders. Our lenders offer highly competitive terms to win your mortgage business

More FREEandCLEAR Mortgage Resources

Home Equity Loan Information: https://www.consumerfinance.gov/ask-cfpb/category-mortgages/home-equity-loans/

Loan Program:
Monthly Payment:
APR:
Rate:
Points : Points: Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
Total Lender Fees:
Loan type:
Property Value:
Loan to Value:
Credit Rating:
Date Submitted:

P & I Principal & Interest: A periodic payment, usually paid monthly, that includes the interest charges for the period plus an amount applied to the reduction of the principal balance.
Mortgage Insurance Mortgage Insurance: The monthly cost for a policy that protects the lender in case you're unable to repay the full amount of the loan. It is typically required for loans that have a loan-to-value ratio between 80% to 100%. (Estimated)
Property Tax Property Tax: (Also called "Real Estate Tax.") Property taxes are government assessments on real estate property. With mortgage financing, the local, county or state tax assessment on real estate property is considered part of the monthly housing obligation and typically collected and set aside by the lender ... (Estimated)
Homeowner Insurance Homeowner Insurance: or also commonly called hazard insurance, is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use, or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.lender ... (Estimated)
Homeowner Association Fee Homeowner Association fee: (HOA) fees are funds that are collected from homeowners in a condominium complex to obtain the income needed to pay (typically) for master insurance, exterior and interior (as appropriate) maintenance, landscaping, water, sewer, and garbage costs. (If Any)
Total Monthly Housing Payments

Points Points Fees you are willing to pay in order to get a lower interest rate. The number of points refers to the percentage of the loan amount that you would pay. For example, "2 points" means a charge of 2% of the loan amount.
Origination Fee Origination Charge: A loan origination charge is a fee charged by the lender for evaluating, processing, and closing the loan.
Credit Report Fee Credit Report Fee: Fee charged to obtain an applicant's credit history prepared by one or all of the three major credit bureaus. Used by lender to determine the borrower's creditworthiness.
Tax Service Fee Tax Service Fee: A fee charged by the lender to cover the cost of retaining a tax service agency. These agencies monitor the property tax payments on the property and report the results to the lender.
Processing Fee Processing Fee: A processing fee is a charge by the lender for clerical items associated with the loan. Examples of processing include loan set up, organization of loan conditions for underwriting, and preparing required disclosures for the borrower.
Underwriting Fee Underwriting Fee: A fee charged by the lender to verify information on the loan application, authenticate the property's value, and perform a risk analysis on the overall loan package.
Wire Transfer Fee Wire Transfer Fee: In most cases lenders wire funds to escrow companies to fund a loan. Commercial banks that perform this function will charge the lender so the fee is generally passed on to the borrower. (If Any)
FHA Upfront Premium FHA Upfront Premium: A fee paid in cash at the close of escrow or more commonly it is financed into the loan. These premiums are pooled together by the FHA and are used to insure the risk of borrower default on FHA loans. FHA upfront premiums are prorated over a five year period, meaning should the homeowner refinance or sell during the first five years of the loan, they are entitled to a partial refund of the FHA upfront premium paid at loan inception. (If any)
VA funding Fee (If any)
Flood Fee
Other Fees Other fees could be either additional Administrative Fees that a lender charges or it could be a Flat Fee to cover all lender charges such as: (Origination Fees, Points, Underwriting and Processing Fees, Credit Reports and Tax Service Fees) The flat fee does not include prepaid items and third party costs such as appraisal fees, recording fees, prepaid interest, property & transfer taxes, homeowners insurance, borrower's attorney’s fees, private mortgage insurance premiums (if applicable), survey costs, title insurance and related services.
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Monthly Housing Payments

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Current Home Equity Loan Rates and HELOC Rates

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Why Select a Home Equity Loan or HELOC

Only Access the Amount of Money You Need.

Flexible Financing Option.

Less Expensive and More Efficient than a Refinance.

Flexible Qualification Guidelines.

Increased Borrowing Capacity.

Use Your Home as a Bank.

Why Borrowers Compare Home Equity Loan Rates and HELOC Rates on FREEandCLEAR

More FREEandCLEAR Mortgage Resources

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Comparing a Home Equity Loan to a Mortgage Refinance

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