Low Interest Home Equity Loan

Now is the time to act if you have been considering using the equity in your home to obtain a large amount of cash with tax advantages and low interest rates. Get a low interest home equity loan and take care of fixing up the house, paying off bills, building an addition, going to college or buying a vehicle. Rates right now are as low as has been seen in decades and a far cry from the high interest rate in 1981 of 16.63%.

Interest rates for home equity mortgage loans and home equity lines of credit (HELOC) are down to 4.5% or lower. This is the ideal time to trade in the old high interest loan for a new low interest loan. The savings long term can amount to tens of thousands of dollars or more. The new loan can be used to cut down the length of the mortgage at only slightly higher payments. It also can be used in the opposite fashion, to lengthen the time remaining to pay off the home at lower monthly payments.

To qualify for the home equity loan with the best low interest rate, a good or excellent credit score is needed. Borrowers who are good at managing money and their debt load will benefit by receiving the best home equity loan interest rates. Borrowers who are not so good at managing their money and who have fair, poor or bad credit will need to clean up their credit record to improve their scores.

Fixing up credit records is not that hard. It is not necessary to hire a “clean up your credit record” company to do your own credit repairs. What is necessary is to get your free credit reports from www.annualcreditreport.com and make sure all the information is correct. Mail in corrections of any disputed information. Keep all credit accounts open but try to get them all below 30% of the credit limit. Do not apply for any new credit and do not let anybody inquire about your credit record.

This entire credit repair may take some time, but it is worth it to get a low interest home equity loan. Even if it takes six months to a year to clean up your credit, once you have moved up a notch or two into the good to excellent ranges above a 660 FICO (Fair Isaac Corporation) score, you can then go and find your home equity loan at low interest rates and start saving money.

Having the best credit helps you get the lowest interest mortgage refinance home equity loans at lower costs. Troubled credit records bring in offers for loans that have higher interest rates, application fees, penalties and other expenses that make those loans even more expensive.

Take time to improve your credit worthiness and then seek out the best deal for a home equity loan. Try credit unions, your bank or mortgage companies first and enjoy being able to find a low interest home equity loan.