Fixed Interest Rate Tips

Video Transcript

"This is Financial Adviser, Patrick Munro talking about what are interest rates for fixed home equity loans. Your home is your most valuable resource, and as it grows in value over time, and your mortgage balance falls as a result by paying your mortgage payment, you have what's called equity. It's possible to release that equity to your control by taking out a loan from a bank, called a home equity line of credit or a heloc for short. The best rate to get is a fixed rate and you can negotiate this from your bank, based on your good credit history. Fixed rates of interest are what the bank requires to be paid back. Normally, this interest rate is a little higher than your primary mortgage, that was the one that you took out initially, but it's always in a situation that is tax deductible to you, under IRS guidelines, so, you have to take that tax deduction off your tax rate, and that's your true rate of return, normally that's very appealing, to have that. You can use the funds for whatever you choose to, and in an interest rate environment that is predictable, it's a great wealth building tool. This is Patrick Munro talking about interest rates on fixed home equity lines of credit."