home equity

Home equity rates for Oct. 11, 2012

 

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

The average rate on a home equity line of credit slipped to the lowest level since Jan. 2009, pulling back to 5.12 percent. However, HELOC rates still have a way to go to reach the all-time low of 4.54 percent established 9 years ago, back in October 2003.

The fixed rate home equity loan held steady at the record low level of 6.28 percent.

While this isn't the cash-out refinancing craze of 2005 or the days of using your home as an ATM, rates are still very attractive for those looking to tap into their sizable equity stake. The added possibility of a tax deduction on the interest, makes those rates even more compelling on an after-tax basis. But borrowers need to have a minimum equity stake of more than 20 percent for lenders to even consider a home equity loan or 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.

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