January 21st, 2010
HELOC and Mortgage Rates in This Economy
A HELOC is a home equity line of credit. This is one way some people use to borrow money for large purchases such as their children's college education or a large purchase that they would not otherwise use their credit card to purchase. Because this is a variable interest rate loan it will have some tie in with current mortgage rates.
It works like this. You apply for the home equity line of credit. Many things are taken into consideration like your credit score. But of course as the name implies the most important factor is how much equity you have in your home. Equity is the difference between what you owe on the property to the lender holding the note on the property and what the property is worth on the open market.


