Question about equity line loans rates?

iVillage Member
Registered: 09-21-2008
Question about equity line loans rates?
4
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


iVillage Member
Registered: 05-06-2007
Fri, 09-26-2008 - 9:43am

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

iVillage Member
Registered: 01-12-2004
Fri, 09-26-2008 - 9:55am

Two different questions, with two different answers.

iVillage Member
Registered: 03-26-2003
Fri, 09-26-2008 - 10:37am

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I disagree with you, but I'm pretty sure

iVillage Member
Registered: 05-14-2008
Fri, 09-26-2008 - 11:15am

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.