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 reversed course after last week's increases, with the fixed rate home equity loan moving to a record low of 6.35 percent. The average rate on the variable rate home equity line of credit pulled back to 5.15 percent. However, HELOC rates still have a way to go to reach the all-time low of 4.54 percent established nearly 9 years ago, in October 2003.
In the case of both the home equity loan and line of credit, there is a substantive advantage to shopping around. Not every lender is charging the same rate and there can be quite a variation among rates being offered by lenders in the same market. Also keep your eye out for fees – whether an application fee, an annual fee or other loan fees. On a line of credit, be mindful of a minimum draw requirement that could mandate you borrow a certain amount at closing, as this conflict with your goals of holding this as an emergency line of credit.
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.