Video: About Home Equity Loan Interest Rates

This Season: Tailgating; New Year, New You; Tax Time

Interest rates for home equity lines are varied based on the value of the overall home and how much is being taken out of the value of the home. Find out how second mortgages can affect home equity loan interest rates with help from a registered financial consultant in this free video on money management and personal finance.

Comments

Video Transcript

This is financial adviser, Patrick Munro talking about home equity line interest rates. Interest rates for home equity lines are variants in nature because there are many factors at play. First off we have the value of the overall home and how much you are taking out of the value beyond the first and maybe second mortgages. Many homes have first and second mortgage and then they have on top of that a home equity line of credit. Always be mindful at the first position, that is the first mortgage has the lowest interest rate because they have the best equity position relative to the overall house and the second mortgage has a higher interest rate beyond that and then of course you need to have a home equity line of credit that will be on top otherwise known as the third position. Therefore you will pay a high interest rate relative to that. You can keep that interest rate down lower if you have excellent credit and if there is still value left in your house after you borrow against it. So keep in mind it is the best strategy used when we have an aggressive real estate market but you can always tap the value of your house if you have great credit. This is Patrick Munro talking about home equity line interest rates.

Follow eHow: Follow @eHow

About Home Equity Loan Interest Rates

Comments

Related Ads

Related Articles & Videos