Tips: How to compare home equity loans

Tips: How to compare home equity loans

Consider a home equity loan instead of refinancing if:

• You plan to pay off your loan in a reasonable amount of time, say, five years. Banks offer their lowest rates on shorter-term equity loans.
• You took out a first Home Equity at an extremely low rate.
• You don’t need to borrow much. Equity loans and lines of credit usually come without closing costs, though their interest rates typically are higher than first Home Equitys.
• You know exactly what you need to borrow. Otherwise, a home equity line of credit might better suit your need.
• You know what you’re risking. You’re not only gambling your equity, you’re gambling the house itself.