About Home Equity Interest Rates

Video Transcript

"This is financial adviser, Patrick Munro, talking about home equity involving interest rates. Interest rates in home equity vary of course depending on your credit and primarily a home equity line of credit otherwise known as a Heloc, vary in range in price of interest rate and it depends on how much of a loan relative to the value of the house that you are going to be getting and this is important to look at to make sure that the more you take out of your home the higher the interest is because you have less equity left. You can mitigate that by having excellent credit and if the bank has done been with you for some time they will realize that and keep the interest rate as low as possible. This strategy works best when the house is appreciating in value and of course in current economic times that can be problematic because house values are dropping in some areas of the country so be mindful of your credit rating. That is the key barometer regarding interest rates in home equity. This is Patrick Munro and I have been talking about interest rates in home equity."