Answers About Home Equity Loans

If you are planning on buying your dream home, a second or vacation home, or even planning to relocate with a new home purchase, there are definitely a variety of home loan options to check out. Many banks, financial institutions and private lenders offer home loans; home equity loans, private loans or equity line of credit loans – all good lending programs to consider, as it helps you to borrow the money, just by using your home on collateral basis.

What is equity?

In financial jargon, it is said to be the difference between the cost of home and how much you owe on the mortgage or combined mortgages, in the case where you have a second mortgage out on the property. In other words the value of your home is the equity you have built into it.

Home Equity Loan Rates

You can find out what current home equity loan rates are, compare them with several different financial institutions and use handy online calculators at BankRate.com: http://bankrate.com .

For example, as per the current statistics of the Bank of America, their home equity loan interest rates are as follows:

1. 30 year with a fixed rate is 5.81% on the amount taken as loan

2. 15 year with a fixed rate is 5.51% on the amount taken as loan

3. 30 year with a fixed jumbo is 6.12% on the amount taken as loan

4. 15 year with a fixed jumbo is 5.78% on the amount taken as loan

The monthly payment of a loan is calculated to be around $400 to $1000.

Home Improvement Loans

If you want to fix up your home, then you will want to search for information on a home improvement loan. These types of loans are designed for the people who want to finance their home repairs, renovation of their homes, room additions to their old homes, etc. without going for equity loans.

The benefits for this kind of loans are:

• No or limited requirement of collateral.

• Interest rates are competitive and are lower than line of credit loans.
• Approval of loans is faster
•  Information of the loan and the transfer of the balance both are can be done through online banking.
• Transfer of funds for the payment of loans can be done through online banking access.
  
  So get a loan and have your dream home!