Business, Legal & Accounting Glossary
A home equity loan rate is the interest rate on a home equity loan, which is a loan that is secured by the borrower’s equity in his home. A home equity loan rate should not be confused with its cousin, the home equity line of credit (HELOC) rate. A home equity loan rate is usually higher than a home equity line of credit rate because the home equity loan rate is most often a fixed rate and the other is most often a variable rate. A home equity loan rate is also usually higher than a first mortgage rate because there is no secondary market for home equity loans. A home equity loan rate on a larger loan ($275,000, for example) will usually be lower than a home equity loan rate on a smaller loan ($30,000, for example).
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This glossary post was last updated: 9th February, 2020 | 4 Views.