HELOC Question

bjl584 · #1 (**permalink**) 01-12-2007, 01:03 PM

I currently have a Home Equity Line of Credit at Prime Interest Rate (8.25). I have heard that sometimes your bank will be willing to lower this rate and lock it in for better customers with good credit, a high account balance, etc. I feel that I qualify for this. Has anyone heard of this or had any luck with any such thing? Thanks for your help!

safari · #2 (**permalink**) 01-12-2007, 01:35 PM

Prime rate is pretty standard for HELOC loans. The best offers I've seen are Prime Rate minus 0.5%. Many lenders offer 0.25% reduction in interest rate if you have a checking or savings account with them and sign up for automatic payments. Home Equaty Line of Credit (HELOC) rate is always lower than the Home Equity Loan, which is fixed. If you want to convert your HELOC into a loan with a fixed rate, it's going to be higher than your current rate.

frugalmomof1 · #3 (**permalink**) 01-12-2007, 02:38 PM

For my HELOC, the intro rate was 5.99% then jumped to 7.99%. I locked in a HEL for 7.24%.

34saving · #4 (**permalink**) 01-13-2007, 07:16 AM

US bank just offered my in-laws a lock at 6.99%