Ever thought about a loan that charges you a constant or fixed rate of interest throughout your loan period? Try the no-hassle and convenient home equity loans, which are always paid in bulk and repaid in monthly installments at a fixed rate of interest.
Home equity lines of credit have interest rates that fluctuate according to the changes in index or the prime rate. This can be highly confusing and problematic for many. Those interested in fixed rates of interest on their loans will find relief in the stability of home equity loan rates.
Home equity loans can be secured against the equity–the difference between the estimated home value and the outstanding mortgage value–of the home, keeping the home as collateral. Fixed rates usually seem a little higher than variable rates in the beginning; however, they are cheaper in the long run.
Available for different periods such as 5 years, 10 years, and 15 years, such loans offer the predictability and stability of a fixed loan for the entire loan and repayment period. Such fixed rates are also tax-deductible.
Home equity loans with fixed rates are usually used for purchasing a new car, a down payment on a house, or consolidating debt, besides other things. Fixed rate home equity loans allow you to borrow up to 100% or sometimes 125% of your home’s value at reasonable and stable rates.
Different financial institutions exist which provide free quotes for home equity loans. Such companies include E-loan, Loan Web, Ditech, Lower my Bills, Mortgage Loan, Home Loan Center, Lowest Rate, and many others. The aforementioned companies and financial institutions offer great fixed interest rates. Some, like the Chevy Chase Bank, offer discounts for their customers.
Credit can usually be accessed from home equity by online banking, telephone, and ATMs. Fixed-rate home equity loans are great for people who want to have stability and predictability in their monthly payments. Still, to get the best deal, you should always research to find the best rate.