Fixed rate home equity loans are one-time loans that are given based on the amount of equity in your home. This loan typically has a fixed period of time in which the loan is paid back. The period of time is usually between 15 and 30 years. In addition, the interest rate on the loan is usually set and does not change.
On the other hand, home equity lines of credit operate much like a credit card. The borrower is given a checkbook and is able to write checks off of the line of credit. The problem with this is that the interest rates on home equity lines of credit are usually adjustable. This means that one check can have one interest rate, and another check can have a different interest rate. And as with a credit card, this can get the borrower in serious trouble.
For anyone considering either of these loans, it is important to speak to a professional who fully understand all of the details. At Downs Financial, we have a staff of mortgage experts to can make sure that you make the right decision about home equity loans. In addition, we can get you the most competitive rates in the industry because we are a direct lender of mortgage loans.
For more information and to find out just how competitive our rates really are, simply fill out our short online registration form. In 15 minutes, you will be personally contacted by one of our loan officers. It is just that simple to get the information you need when you need it.