Getting an home equity line of credit is a big decision. A home equity line of credit allows you to borrow a line of credit on your home. Of course there are rules and stipulations that every applicant is required to pass in order to qualify for this program. However, it is important to note that requirements are not the same with each lender. The general idea is that an applicant should have sufficient income, great payment history, and not to mention, a low debt to income ratio.
What To Look For
Low APR: A low APR is critical when searching for the best HELOC loan for your home. APR stands for Annual Percentage Rates and it is the interest that accumulates after a year.
Length of Repayment
Each loan will have a length of repayment attached to the borrower. Finding out the best schedule for you and your needs are what makes each HELOC unique. When looking for the best home equity line of credit rates keep in mind these requirements. Every lender will have a different timeline for repayment with different expectations. Find a lender whose timeline, APR, and expectations work for you.
Penfed Credit Union
Penfed is a HELOC that is highlighted for it’s low APR. With a 0.99 rate, Forbes Financial Advisor rates is 4.0. Penfed allows you to borrow up to 90% of your original mortgage making this HELOC more competitive than most competitors.