I'm Greg McBride, senior financial analyst with Bankrate.com and here is your weekly look at home equity rates.
Rates on home equity loans pulled back this week, and it was enough to establish a new six-and-a-half year low.
The average home equity loan rate is now 6.92 percent. Now, this is a fixed rate, installment loan, meaning you borrow all the money at once and repay it in even monthly payments.
By contrast, a home equity line of credit offers attractive initial interest rates and a lot in the way of flexibility.
As a line of credit, you can borrow or repay money as needed and the minimum monthly payment is typically interest-only. The average rate on a home equity line of credit is 5.56 percent. But that's the catch.
That interest rate is variable and will adjust upward once interest rates begin to rise.
Prospective borrowers must be mindful about borrowing a whole bunch of money now only to repay it later at what could be much higher interest rates.
For more information on home equity loans and home equity lines of credit, and to check home loan rates in your area, go to Bankrate.com. I'm Greg McBride.