Home Equity Loans Hot

Physician's Money Digest, November15 2003, Volume 10, Issue 21

Bonus

Rising mortgage rates have slowedthe race to refinance traditional mortgages,but lenders are putting togethertempting deals on home equity lines ofcredit (HELOCs) that let borrowers getcash out of their homes economically.Because their interest rate is tied to theprime rate, which is still at a historic low,HELOCs have become more attractivethan fixed-rate mortgages. Some banksare offering teaser rates below 3%, withsubsequent rates a quarter point or morebelow prime. Currently, the nationwideaverage interest rate on a HELOC isunder 4%, compared with an average ofabout 5.7% for a 30-year fixed mortgage.: With a HELOC, you don'tpay any principal or interest until youactually use the money.