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The home equity line of credit rates will vary depending on which bank you decide to make your loan with but there are a few factors that you will want to consider before signing the papers. In most cases a home equity line of credit will start with a low rate and within six to twelve months the rate will jump to a certain rate or even become a flexible rate depending on what the market is. This may not seem like a huge thing to consider when you are first signing your agreement for the loan but down the road when the rate changes if you are not prepared for the change you will have to make adjustments at that time that you may or may not be prepared to make.
A home equity line of credit is a line of credit that allows you to borrow against your home for a certain amount of money for home improvements. This type of loan is ideal if you are planning on staying in your home for a long time, if that is not your intentions you may want to look into other alternatives.
|Sheri Ann Richerson|