Blograby

Best Home Equity Loan – Where to Find the Best Home Equity Loan

If you are a first time home buyer you may be wondering, “What is the best home equity loan available for me?” The answer is that it depends on your circumstances. Below are a list of some of the types of loans that are available.Fixed Rate MortgageThe fixed rate mortgage is the most common type of loan available and it is usually a 30 year loan. Fixed interest means that the rate stays the same throughout the life of the loans, which means that they payment amount never changes so you’ll know what to expect to pay each month.Adjustable Rate Mortgage (ARM)The adjustable rate mortgage or ARM is also common, but less people choose to partake in it. The advantage is that the initial interest costs can be lower, but if the rates increase you may get a higher rate than you would have with a fixed rate. Then again your rate might stay the same or in same cases even go lower. The disadvantage to this type of loans is that when the periodic rate adjustments occur it can affect the amount that you pay back each month. So if you’re not expecting it your payment can increase. In the long run you might end up saving money with this type of loan, but you should have extra money in the bank just in case your mortgage payments change.Federal Housing Administration (FHA) and Veterans Administration (VA) MortgagesThese are federally backed loans for veterans and government workers. These are the typical fixed rate and adjustable rate loans. However these loans are low or no down payment. The VA loans are only available to those who have served military service, but the FHA loans are open to anyone who can qualify for one, but the requirements can be strict.The Internet has been an important game changer for the home equity loan market and because lenders are competing for borrowers on a massive scale it has led itself to lower rates. Some places that you should consider looking at are the LendingTree.com, LowerMyBills.com and the HomeLoanCenter.com Quicken Loans, Country Wide Home Loans, E-loan, Loan Web, and Net Bank. These will give you the best home equity loans at the most competitive rates.If you have good credit most of these lenders will offer 100% financing and some will offer up to 125%.If you want the best home equity loan then you will want to get a copy of your credit report before hand. Having a good score will help you to get the best rate available. You can do this at FreeCreditReport.com once a year.

Exit mobile version