Understanding Home Equity Line of Credit (HELOC) Rates
A Home Equity Line of Credit (HELOC) allows homeowners to borrow money using the equity in their home as collateral. Unlike a home equity loan, which provides a lump sum, a HELOC offers a revolving line of credit that you can draw from as needed. The interest rates on HELOCs are variable, meaning they can change over time, reflecting broader economic conditions and lending practices.
Factors Influencing HELOC Rates
Several factors influence HELOC rates. One of the primary determinants is the borrower’s credit score. Lenders use credit scores to assess the risk of lending, and those with higher scores generally …