Current Mortgage Rates

Monday, October 06, 2008



Take a Look at the Largest Costs: The single largest cost associated with most home-equity loans is interest. When comparing loans, keep in mind that the annual percentage rate (APR) is calculated differently on a traditional home-equity loan than on a home-equity line of credit - the first has a fixed interest rate and the second has a variable interest rate. The APR for a home-equity line of credit is calculated based on the loan's interest rate. The APR for a traditional home-equity loan generally includes the costs of initiating the loan. Because of this difference, a direct comparison between fixed-rate loans and variable-rate loans cannot be made. Borrowers need to think over on some important points before going for home equity loans.
  • The profits of the loan must outlive the loan period. Home equity loans should not be taken for your daily expenditures. Such loans should be taken in case of emergencies.
  • For applying for home equity loans, documentation of the lender should be thoroughly checked. Any document should be signed after reading the term and conditions carefully. Always keep the copy of the main documents for future use.
  • Avoid those home equity loans where your monthly income is insufficient to repay the loan amount. If you go for such a deal, lenders may repossess your home because of defaults in repayments. Plan for the loan you are going to take and think over all the positive and negative consequences.
  • You also need to maintain your credit record so to trace back. In case of bad credit record, your credit limits can be checked.
A home equity loan is a great way to help you take care of things you would like done or feel you need. If done properly, a home equity loan can be a valuable resource. Educate yourself to find out what is best for your situation. Try not to compare your situation to someone else. Only you know what is best for you. Home equity loans can be a big windfall or a big headache. It really depends upon you taking the time to research your options and choosing the right loan.



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Current Mortgage Rates*

Loan Type
National Average
30-yr. fixed6.12%
30-yr. fixed jumbo7.62%
15-yr. fixed5.88%
15-yr. fixed jumbo7.12%
7/1 ARM6.38%
5/1 ARM6.25%
3/1 ARM6.00%
1-yr. ARM5.50%
1-yr. LIBOR ARM6.25%
10/1 ARM8.25%
40-yr. fixed7.12%
*Mortgage Rates Updated: 10/05/2008