Finding the lowest rate second mortgage is just a matter of picking the
right loan and the right lender. To ensure low rates on a home equity
loan, start by checking out your credit report. Then pick low interest loan
terms and start asking for quotes. In no time you can sift through the offers to find the best deal for you.
Check Out Your Credit Report
To guarantee that you qualify for the lowest rates, take a few minutes
to
look at your credit report. You don't want to pay higher rates for
mistakes
made by your creditors. If you do find errors, take it up with the
reporting
agency. It is their responsibility to fix them.
You may also want to check your credit score. This will give you an
idea of
your credit standing. Scores of 650 or higher get the best rates.
However,
lower scores still qualify for reasonable second mortgage rates.
Choosing The Right Terms
To find the lowest rates, you need to select the right terms. APR loans
start off with the lowest rates, but there is the chance they may
increase.
Second mortgage rates are also lower than home equity lines of credit.
However, with a line of credit, you only pay interest on the amount you
use.
The lowest rates aren't always the cheapest loans. It really depends on
your
own financial situation and how long you pay on the loan.
Request Quotes From A Variety Of Sources
Once you have selected the type of home equity loan you want, you can
ask
for quotes. Don't just stick with well known financing companies. The
more
lenders you include in your search, the more likely you are to find a
good
deal. Lenders compete through their rates and fees.
A mortgage broker site can help you find lenders. With such sites you
just
type in the information once and they send you several offers. You can
also
go to lender sites to request information.
You can also get lower rates by paying points or up front fees. You can
ask
about this option from lenders before applying. When you do find that
perfect deal, don't wait. Rates are unpredictable and can change daily.
Here are our recommended
home equity
and
second mortgage lenders online.
Carrie Reeder is the owner of ABC
Loan
Guide, an informational website about various types of loans.
