Your credit score can greatly affect the rates you get on home equity loans. The best rates for home equity loans are reserved for those with excellent credit. Those who have FICO scores between 750 and 850 are typically considered to have excellent credit. A person having this credit score is likely get a home equity loan with an interest rate around 7.5 percent. However, this rate can change frequently.
For those who have average credit, the rate goes up by about a point or more. An average credit means having a FICO score between 620 and 749. However, many lending institutions break this down into two categories. Those with a FICO score between 620 and 659 are considered to have fair credit. Individuals with a credit score of 660 to 649 are considered to have good credit. Of course, the higher the credit score, the lower the interest rate on a home equity loan.
Now, for those who have bad credit, which is considered to be between 350 and 619, the interest rates can jump by two points or more from those reserved for individuals with excellent credit. There are not truly hard and fast rules because all lending institutions set their own individual criteria for the risk they are willing to take based upon a person's credit history.
With this in mind, Downs Financial is skilled at working with people with all types of credit. In fact, about 80 percent of our customers actually have bad credit. Because of this, even with bad credit, our rates are often better than those of other lenders. To find out just how good our rates are, simply fill out our easy online registration form. In 15 minutes, you will be contacted by an experienced loan officer who can give you all the details on a home equity loan from Downs Financial.