What's the better choice? Thinking of getting a relatively small loan for renovations.
2007-08-06 08:18:53 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Check with a bank; or a site like
http://homeequity-linecredit.com/
with some of the better online companies.
2007-08-06 13:09:42 · answer #1 · answered by Anonymous · 0⤊ 1⤋
If you are planning on using all of the money you borrow go for the home equity loan it is a fixed rate that is usually lower than the line. If you are not planning on using all of the money then the line might be better because you only pay on what you use however the rate is always adjustable and is tied to prime so if prime goes up then your rate goes up and vise versa. Prime is at 8.25 right now and hasnt moved in a long time. I would advise going to a bank for the loan you choose because banks can offer lower rates than brokers can.
2007-08-06 09:54:00 · answer #2 · answered by courtney02908 2 · 1⤊ 0⤋
You can expect to pay high interest rates for both. A line of credit is exactly that, it is like having a credit card, so if you use the entire balance and pay it off, you can "reload" the amount. A home equity loan is one flat fee that if you use the entire amount, thats all that you can use.
2007-08-06 09:05:26 · answer #3 · answered by lovelyrj7 4 · 0⤊ 0⤋
Would go with the equity line if you are responsible, because you only take out what you need for the project.
2007-08-06 08:21:58 · answer #4 · answered by Pengy 7 · 0⤊ 0⤋
Hello, just wanted to mention, I enjoyed this discussion. inspiring answers
2016-08-24 11:12:52 · answer #5 · answered by ? 4 · 0⤊ 0⤋