Home Equity Loans
Equity Loan Info:
Loan or Line?
-HELOCs for Emergencies
-Home Improvement Loans
-Loans vs. Line of Credit
-Downside of Equity Loans
THE COSTS & FEES OF HOME EQUITY LOANS / LINES OF CREDIT
A home equity loan is one of the easiest ways to borrow money.
These types of loans offer favorable interest rates (in comparison
to credit cards and other loan types). Home equity loan interest
rates are also tax deductible, whereas credit card interest rates
and most loans are not. There are many different types of home
equity loans. Getting one that offers the lowest rates and fees
takes knowledge. Below are some tips that will help find the right
home equity loan for your needs.
Interest rates are the largest cots associated with home equity
loans. It is important to understand that the APR, otherwise known
as the annual percentage rate, is different for home equity loans
and equity lines of credit. Equity loans have fixed interest rates
while lines of credit have variable rates. The APR of an equity line
of credit is determined based upon the loan's interest rate. Whereas
the APR of a home equity loan usually includes the cost of
initiating the loan. Obviously these factors mean that there are big
differences in cost when comparing these two types of loans.
Obviously, the longer you utilize the loan, the more money you are
going to pay in interest. Therefore, if you can pay off your loan
early, you should! Keep in mind that it is possible that a fee may
be imposed as a result of settling your loan early.
As mentioned, interest is the largest cost associated with home
equity loans. However, it is not the only cost. The fees of home
equity loans and lines of credit are similar to those of regular
mortgages, i.e. closing costs, attorney fees, title search,
insurance, paperwork preparation. You will also have to pay
appraisal fees to determine the market value of your property.
Additional fees also include, application fees for loan processing,
points and an annual loan maintenance fee.
When utilizing a home equity line of credit, it is likely that you
will have to pay a transaction fee every time you withdraw money.
You may even have to pay an inactivity fee if you do not use any of
your credit line for a specific amount of time.
Why apply for an equity loan with Star Loan Services?
We offer a variety of loan programs for every need! You don't
need perfect credit in order to achieve approval! In fact, we can
help you secure your equity loan or line of credit even if you have
bad credit or experienced bankruptcy! Learn more about the different
equity loans or
lines of credit we offer. Or
apply now for one of equity products!