|
Home equity loan |
Home equity line of credit (HELOC) |
Interest rate |
Fixed |
Variable |
Monthly payment amount |
Fixed |
Variable |
Closing costs and fees |
Yes |
Yes, might be lower than other loan types |
Repayment period |
Typically 5-30 years |
Typically 10-20 years |
FAQ
What is a rate lock?
Interest rates on mortgages fluctuate all the time, but a rate lock allows you to lock in your current rate for a set amount of time. This ensures you get the rate you want as you complete the homebuying process.
What are mortgage points?
Mortgage points are a type of prepaid interest that you can pay upfront — often as part of your closing costs — for a lower overall interest rate. This can lower your APR and monthly payments.
What are closing costs?
Closing costs are the fees you, as the buyer, need to pay before getting a loan. Common fees include attorney fees, home appraisal fees, origination fees, and application fees.
If you’re trying to find the right mortgage rate, consider using Credible. You can use Credible’s free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.
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