Find the Best Home Equity Loan Rates [5 Lender Shopping Tips]

The process of taking out a home equity loan often feels overwhelming with several different factors to consider and choices to make. One of the most important parts of the process is finding a good deal on your interest rate. To help you find the best deal and loan terms to fit into your budget, we put together the following five lender-approved tips for getting the best home equity loan rates. 

1. Prepare before Applying

FICO credit scores range from 300 to 850. A clean credit report and strong credit score will help you in the approval process. Bolster your credit history before applying by keeping accounts current, paying off any collections and avoiding opening up new credit accounts before closing on your loan. 

2. Work with a Trustworthy Lender

By working with an experienced lender, you can rest easy knowing your loan professional will have the knowledge to help you access every resource and provide you with a whole range of loan options to ensure you get the best possible interest rates and terms. 

3. Ask about Different Loan Terms

Home equity loan rates usually vary depending on the term of the loan request. Within three days of receiving your completed application and required documentation, a financial institution will furnish you a loan estimate, which outlines an estimate of the total cost of the loan, interest rate and payment amount based on your application and loan request. At the time of application, consult with your lender for possible payment quotes. You may also email us at info@americascu.org for this information. 

4. Fixed vs. Variable Home Equity Loan Rates

Understand the difference between fixed and variable rates. Fixed rates stay the same throughout the life of your loan, while variable or adjustable rates change according to a predetermined schedule. Payment amounts sometimes change based on adjustable rates. Fixed home equity loan rates allow you to better plan your financial future with a steady payment amount. 

5. Consider Overall Cost – Don't Just Focus on the Rate

The total cost of financing includes more than just your interest rate. When loan shopping, be sure to ask about closing costs. On a home equity loan, these might include loan origination fees, appraisal, title insurance, title company fees, recording fees and more. You should also ask about early payment penalties or fees, in the event of refinancing or paying the loan off before maturity. 

Competitive Fees and Flexible Financing on Home Equity Loans with America's Credit Union

In addition to our competitive home equity loan rates at America's Credit Union, we offer a host of additional benefits:

• No origination fees and no pre-payment penalties
• Flexible repayment terms to fit your budget and financial goals
• In-house loan servicing
• Minimal closing costs
• No application fee – applying is easy and risk-free

Contact an ACU mortgage lender today at info@americascu.org.

Sources

1. Consumer Financial Protection Bureau. (2017, September 12). What is a Loan Estimate? Retrieved April 04, 2018, from https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-estimate-en-1995/

2. Fair Isaac Corporation. (2018). Understanding All 3 FICO Credit Scores. Retrieved April 04, 2018, from https://www.myfico.com/credit-education/credit-scores/