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Best Home Equity Line of Credit Rates

The best home equity line of credit rates are those that match the lowest interest rate currently being paid on mortgages.

These rates are usually only available to homeowners who have really good credit scores. Lenders give better rates to those with good or excellent credit scores because they consider those individuals a lower risk of foreclosure. The reverse is also true: lenders give persons with bad credit worse rates because they are considered bigger risks.

Having a good credit score then is the key to getting the best home equity line of credit rates. Anyone who is thinking of getting a home equity line of credit needs to know what their credit score. Those who take control of their credit scores will be able to get the best home equity line of credit rates.

Managing Your Credit Score

The first step in managing your credit score is to get a copy of your credit report. Your credit report will show you what the big three credit unions say about you.

The big three credit bureaus are Experian, Equifax Credit Information Services and Trans Union Corp. They compile information about you reported by banks, credit card companies and others. The more negative information they compile the worse your credit score will be.

You can get a copy of your credit report by visiting their websites. Once you get the report you should read it carefully. If you find any false or inaccurate information on the credit report you can have it removed. Removing false or inaccurate information can cause your credit score to go up.

The higher your credit score the better the chance that you’ll get the best home equity line of credit rates. Taking a little action before seeking a line of credit can ensure that you get the best rates.

Home Equity Line of Credit Rates

Lenders base the rates they charge on home equity lines of credit on three things: the amount of credit you want, the geographic location of your home and your credit rating. They use four classifications of credit rating to determine the interest rate you pay.

These classifications are: excellent, good, poor and bad. Those with excellent credit will pay the best rates. Those with good credit will pay a better rate. Those with poor credit will pay a worse rate and those with bad credit will pay a really high rate if they can get a line of credit.

Individuals with bad credit may have to go to internet lenders that charge a really high rate of interest to get a home equity line of credit. Many banks and traditional lenders will not make lines of credit available to those with bad credit.

Find the Best Home Equity Line of Credit Rates

Once you’ve got your credit score you should start shopping around for a line of credit. The more shopping you do the more likely you’ll be able to find the best home equity line of credit rates.

The best place to search for home equity credit is online. There are many websites that let you compare lines of credit and the rates charged on them. These websites will show you much credit you can get and what you’ll pay for it.

Anybody who is willing to take control of their credit and shop around should be able to find the best home equity line of credit rates.