Home Equity Loans

Home Equity Loans

Welcome to Home Equity Loans Shop

Home Equity Loans help you shop, compare, and find the best program in minutes, with or easy quote form.

Regardless of your need, whether for home improvement, cash-out, debt consolidation, or if you just need to take advantage of the equity in your home with a line of credit, Home Equity Loans is a resource for both information, and to help you shop for the best mortgage company offering the most relevant program for your goals, and with the best rate.

Currently in this economy, mortgage rates consistently remain at all time lows. We our quote form, we can help you find the lowest rates in your states. The most critical factors that control what you may prevent you from qualifying for the best product include your credit history and score, the amount of actual equity you have in your home. Unlike Fannie Mae and Freddie Mac, the prime rate tends to be a larger factor in controling rates for these products.

Difference between a Home Equity Loan and a Line Of Credit

They are very similar and there is pros and cons of both. Both a home equity line of credit or loan can be a 1st lien (or 1st mortgage) or a 2nd, and sometimes even a 3rd lien against the property. They both use the equity in your home as collateral. The difference is that a line is a revolving credit, and is variable and generally based on the prime rate. The benefit you get with the line of credit, is that you both have more control on how much of the funds you want to use and at what time. Also, with a line of credit, you generally have much lower mininium payments, and the interest rates can be lower. The big benefit with Home Equity Loans, is that they rates are locks in and fixed, and you have to take all the money in one lump sum, and you don't have the option to draw out more funds as both the rate and the loan amount are locked. Especially in this market, if you don't plan on using all the money at once, it may actually be better to use a Home Equity Line of credit. This is because not only do you have more control of your money by the month, but many lenders allow you to "lock" them in, and convert them to a loan quite easily. Actually, some banks will let you lock in your balances up to 5 times (but check with your broker or lender first). Although this may seem a little more risky, you can actually get a lower fixed rate this way, if you lock in your line of credit while the prime rate reaches a low.

With a home equity line, you will be approved for a specific amount of credit--your credit limit, the maximum amount you may borrow at any one time under the plan. Many lenders set the credit limit on a home equity line by taking a percentage (say, 75 percent) of the home's appraised value and subtracting from that the balance owed on the existing mortgage. For example,