Home Equity
Rate: 5.26 percent (line of credit); 8.38 percent (loan)Rates on home equity products were split this week.
The average home equity line of credit, or HELOC, rose by 6 basis points to 5.26 percent. Meanwhile, home equity loan rates slipped 2 basis points, to 8.38 percent.
In recent months, fewer lenders have been offering home equity products. A combination of sinking home prices and rising borrower defaults has made loans and HELOCs increasingly risky.
However, this week offered a glimmer of hope for prospective home equity borrowers living in the Ocean State. Bank Rhode Island announced that it would use $30 million in government TARP funds to begin a new "aggressively priced" home equity loan program.
TARP -- which stands for Troubled Asset Relief Program -- is the government bailout effort being used to inject cash into lending institutions in hopes of thawing frozen credit markets.
The bank says it will offer Rhode Island homeowners loans at a fixed rate of 5.49 percent for a term of up to 30 years. There will be no points or closing costs associated with the loans.
To find the best home equity loan rates in your area, check Bankrate's interactive tool.
-- Chris Kissell