| North Palm Beach, Fla. -- Nov. 27, 2009 (Bankrate.com) -- The average rate on a $30,000 home equity line of credit in the United States remained unchanged at 5.64 percent on Friday, according to Bankrate.com's daily Your Best Interest report.
A $30,000 home equity line of credit is an open-ended loan, paid as revolving debt, that is backed by the portion of the home''s value that the borrower owns outright. Interest paid on a home equity line of credit is usually tax deductible. The rates quoted on Bankrate are based on a $30,000 revolving, open-ended line of credit with a loan-to-value ratio of 80 percent. Someone taking out a $30,000 home equity line of credit at the current average would pay $141.00 a month for the life of the loan. Nationally, the highest rate on a $30,000 home equity line of credit was 11.32 percent. The lowest rate was 2.75 percent. Six months ago, the average rate was 5.26 percent. Some loans have an introductory rate for a fixed number of months. When an introductory rate is offered, that is the rate that is included in the average. Some institutions will not quote a specific rate, but instead quote a range of prices. In that case, Bankrate uses the midpoint of that range for the purpose of calculating rate averages. A lien must be placed on the property as part of the processing of this credit line. To see all of the results of Bankrate.com's surveys, go to www.bankrate.com. The Your Best Interest report is a daily service of Bankrate.com, a financial news and information service based in North Palm Beach, Fla. Bankrate surveys more than 300 financial products from more than 4,800 institutions in all 50 states. |