http://www.my-first-mortgage.com/home-equity/home-equity-loan/home-equity-loan-rates/ Home equity loan rates depend on the type of equity financing you are looking for. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 As you apply for a home equity loan you will have two viable options: the true form of equity loan, is a one time sum that can bee repaid via the traditional mortgage methods - fixed or adjustable, with variant repayment terms or you can apply for a Home Equity Line Of Credit (HELOC) allowing you access to your home equity for an extended period of time where during that time you are responsible only for interest payments ( which are ALWAYS adjustable). The question becomes which option is right for you? And which method will provide lower home equity loan rates? The type off financing determines your home equity loan rates Before we go any further, its important to remember that your home equity loan rates will be higher than the rates attached to your first mortgage. Expect that, prepare for these higher rates and you'll be ok. Ok? Ok, lets go on. As with your first mortgage, the lowest possible payments come when the rate is adjusting and when the payments are interest only - hello HELOC. A HELOC will carry lower home equity loan rates than a counterpart home equity loan, but you also leave the door wide open for a significant rate increase that might destroy your plan. So, you've got to prepare for the worst: find the adjustment caps attached to your home equity loan rates and plug these into a calculator if the monthly payments at the highest potential rates are unbearable, then you should think twice about this equity financing. With home equity loan rates we're forced to pay what the lender offers - there is no governing limits, and there is almost nothing keeping home equity loan rates low other than lender competition. How to find the best equity rate Well, you have a hard road ahead. Shaving 1% off that home equity loan rate will save you thousands of dollars off your second mortgages, but it will also take away that much money in profits from your broker or lender. Remember that - your contacts will fight just so hard for your lowest rate before they start fighting for their profit margin. So you have to contact multiple lenders - aCountrywide home equity loan will carry know rates but they might not be the lowest. To save more on your home equity loan rates you have to bee willing to work hard - expand your search, be open to progressive lending tactics, and always keep your eye on the bottom savings line. Sat, 26 Jul 2008 15:00:00 EDT