home equity

Home equity rates for Jan. 16, 2014

 

I'm Greg McBride, chief analyst with Bankrate.com and here is your weekly look at home equity rates.

The average rate on the home equity line of credit reversed last week's move, rising to 5.2 percent. The average rate has been at 5.2 percent for three of the past four weeks. In a testament to how static HELOC rates have been, the average has been in a range of just 4-one-hundredths of a percentage point over the past three months.

The average fixed rate home equity loan inched lower to 6.13 percent.

Often, the choice between a variable rate HELOC and a fixed rate home equity loan is based on considerations other than rate. Yes, the HELOC carries a variable rate that is sure to rise in the years ahead, but the flexibility that borrowers have in terms of when to borrow and how to repay the balance in the first decade the line is open, often trumps immediate concerns about interest rates. In contrast, the fixed rate home equity loan is repaid in even monthly installments over a defined period of time.

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.

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