How do you compare HELOC rates?


Quick Answer

You can compare home equity lines of credit rates by visiting websites such as MyBankTracker.com and keying in your state, the HELOC amount and your credit score, explains My Bank Tracker. Shop around for rates from different lenders, as a small difference in your annual percentage rate could make a huge difference in the long run, according to The Simple Dollar.

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Full Answer

A simple way to compare home equity line of credit rates is to visit rate-finding websites, according to The Simple Dollar. These tools can help you compare the rates that banks and credit unions in your area offer for HELOC loans. You could ask your current mortgage lender for a good HELOC rate, as most lenders offer discounts to current customers, according to MortgageLoan.com. Haggle with your preferred lender, and try to get the lowest rate possible

Be very careful about companies that offer very low interest rates, as these rates could be a teaser, advises The Simple Dollar. Some lenders have an introductory rate for applicants that lasts a short time. After this period expires, the rate can increase significantly. Ask you lender whether the rate is an introductory rate, and what the nonintroductory rate is going to be.

However, you should note that the prime rate, which is based on federal fund rates, determines interest rates, according to My Bank Tracker. The prime rate may fluctuate, and this fluctuation affects interest rates on HELOCs.

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