About Home Equity Loan Rates
Home equity loans rates will depend on several things.
First, there is loan-to-value-ratio (the difference between the amount of your mortgage and the appraised value of your home). Most lenders allow you to extend the credit based on a percentage of projected market value of your home. Lenders will charge high interest rates for high loan-to-value percentages. Second, credit history is important, which means, if you have a high credit score, your home equity rate will be lower. How much you borrow is also important - the larger amounts you borrow, the lower your rate will be.
Generally, home equity loan rates are higher than first mortgages. But, you can find lower rates with some good online searching.
