Everywhere you turn you hear about how this is the time to buy a home and that the interest rates are lower than ever. In addition, people are being told that opening a home equity line of credit is even more affordable than ever with the lower interest rates out there right now. Finding home equity line of credit information is not hard to do if you know where to look.
Ask Around For Home Equity Line Of Credit Interest Rate
Many people think that because interest rates are low, any place they call for a home equity line of credit interest rate will give you the lowest rate possible. This is not true! Every business is still trying to make money regardless of the lower interest rates. Because of that, different institutions will have different rules and regulations regarding their home equity line of credit interest rates. With a 750 credit score you might get a 3.5% interest rate at one bank but another might give you a higher or lower interest rate.
Remember, while many institutions require you to get a home equity line of credit from the lending institution where you got your mortgage, some do not require this and shopping around really is a viable option. Make sure to ask your lending institution to find out whether or not you are stuck with regards to your choices.
The best way to prepare yourself to know what your home equity line of credit interest rate will be is to know your credit score. Everyone should know what their credit score is. You can request a copy for free from the federal government once a year to find out what is on your credit report and what your credit score is. The higher your credit score, the lower you can expect your home equity line of credit interest rate to be.
If you have a low credit score, it might be best to wait to take out a home equity loan. While you do not know whether or not the home equity line of credit interest rates will begin to rise while you are raising your credit score, it really does behoove you to raise your credit score anyway. If you are able to raise your credit score in a year, then perhaps the lower score will net you an even lower interest rate than you could have gotten this year with the rock bottom home equity line of credit interest rates.