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 was down for the fourth straight week, falling to an 8-year low of 5.06 percent. The record low of 4.54 percent was established back in October 2003. The average home equity loan rate was down for the 3rd week in a row and the 6th time in the last 8 weeks, resetting a record low of 6.22 percent.
There is still quite a disparity in rates between the variable rate home equity line and the fixed rate home equity loan. With the Fed indicating interest rates will remain near current levels until mid-2015, the likelihood of your variable rate home equity line skyrocketing anytime in the next few years is remote. But nonetheless, gauge your borrowing needs and your timetable for repayment. You don't want to be borrowing all the money in the years when rates are low only to carry that debt into a much higher interest rate environment 5 or 10 years from now.
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.