IS a home Equity loan rate lower or higher then a mortgage rate?

Question

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Answer 1

Normally Higher because of its "Second Lien" Status. The fact is they are more of a risk to the bank. Why?? What happens if you loose your job and can only make your 1st mortgage?? The truth is that u can go without making a payment on your second but they can never go into foreclosure proceedings unless the lender who has the first mortgage subordinates, which will almost never happen. It will obviously effect your credit and mortgage history but it can an only become a lien. Hope that explains why 99% of HELOC's and HEL's have higher rates..

Answer 2

Generally higher, because it will be a junior mortgage. That means that while it is Secured, if the property goes into foreclosure, the prior mortgage(s) get paid before they see a nickel. That makes it a little riskier, which demands a higher return than a First.

Answer 3

Usually higher.

I think you meant Home Equity Line of Credit vs. Mortgage.

Answer 4

you would be able to desire to inspect the entire photograph. in case you have your loan very own loan for long term and had paid a great style of the pastime, refinancing potential you commence throughout lower back to pay those pastime plus ultimate value. How plenty are you gonna desire on your place restore? If that's a small quantity like $5k to $30k, that's particularly helpful to lend out of your HELOC rather with the aid of fact that's a pastime in basic terms and extremely versatile with charge. you will pay greater desirable each and each month to hold it down in few years. Its pastime fee many times below a 30 years very own loan. financial company of usa is approximately 4.5% and no ultimate value in any respect. examine it your self and do the calculation. a great style of the HELOC pastime you paid is tax deductible. many times after 15 years it is going to turn to a fastened fee or you could refinance to a fastened fee any time you desire.

Answer 5

It's higher than a regular mortgage. If you want to figure out payments, here's an online mortgage payment calculator:

http://www.robhenry.com/calc.htm

Answer 6

It's higher and will adjust with the market each month.

If you want to take a second out on your house, consider a line of credit. You only have to pay what you use, just like a credit card.

Answer 7

It will be higher...Plus if your credit limit is not 630 or above they won't lend you anything...You might just look into refinacing..If you have credit card debt..You could consolidate your credit card debt and be able to claim it on your taxes..I work for a mortgage company in Michigan ...I would love to run some numbers and see if I can help you in any way ...Thanks Dave

Answer 8

Almost inevitably higher.

Answer 9

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