Question about equity line loans rates?
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Question about equity line loans rates?
| Fri, 09-26-2008 - 9:16am |
I was not sure where to post this topic.....
Are equity line rates and loan rates going to skyrocket? I have an equity line (variable) that I can barely afford and am concerned. I cannot get a fixed rate because I was told I need to live at this property.
TIA

We're having a similar issue. We have a 5 yr. ARM and the fixed rate expires in December of next year. We wanted to refinance with a VA loan but
Chrissy
mom to Aidan 8/21/03
Grayson Blaine 12/30/07
Two different questions, with two different answers.
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I disagree with you, but I'm pretty sure
That's correct. Typically the rate is slightly higher but not much if your credit is good. And the loan to value ratio requirements are different. Typically they require a bit more equity to do an investment property than on a first or second home.
I have several equity lines as well and they all have options to lock the rate in. I know one of my lines my regular variable rate is prime - .95% so my rate is currently at 4.05%. I locked in a chunk of it not long ago at 5.28% because I wanted to make it fixed.
So maybe your equity line has a lock feature? Even my older equity lines which didn't have them when the lines were originally opened have had them added. So it never hurts to ask.