I'm Greg McBride, senior financial analyst with Bankrate.com and here is your weekly look at home equity rates.
Rates for both home equity loans and lines of credit stepped up this week. The average rate on the variable rate home equity line of credit nosed higher to 5.17 percent while the average fixed rate home equity loan posted the first movement in three weeks, rising to 6.4 percent
In the case of the variable rate line of credit, rates are back to where they were in late June, which is to say that rates are still plenty low. If you have sufficient equity to borrow, you're in business. But the thing to consider is this. That super-low variable rate is plenty attractive now but several years down the road after you've piled up a hefty balance from home improvements or college tuition payments, that rate could be moving steadily higher. And don't forget, at some point you'll need to start paying back the principal balance rather than just skating by making only interest payments. Think about affordability not just today, but for years into the future as well.
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.