If you are in the market to make improvements to your home, you have probably considered getting a home improvement loan. There has never been a better time to take out such a loan, a home equity loan has the best rates in these moments, nationwide. There are a few factors that can alter your home improvement loan rate, so we urge you to do your homework beforehand.
The first factor that affects your home improvement loan rate is the type and length of your loan. Generally speaking, an adjustable rate mortgage will carry a lower rate than a fixed home improvement loan. You may also enjoy a lower interest rate if you decide to pay your loan off in a shorter time period. This can vary by lender, so make sure to find out how these parameters will affect your home improvement loan rate.
Your home improvement loan rate can also be affected by the national prime interest rate. This is a figure that is set up by the government as a basis for all consumer lending. The bank will then add a few points for various reasons. The lower the prime rate, the better interest rate you will receive on your loan.
Lastly, your credit score plays a role in determining your home improvement loan rate. The higher your FICO score, the better rate you will get on your loan. By following these tips, you can maximize your chances of getting a home equity loan with the best rates in the market.
