“No-equity home equity loans” offer credit to those who might not qualify for traditional credit. These quasi-secured loans have rates 2% to 6% higher than traditional home equity loans. Fees are also higher with these types of loans. It’s important that you compare interest rates and closing costs from multiple lenders. Pay particular attention to the fees, points, and penalty fees. These often add thousands to the cost of the loan.

The various purposes for which home equity loans can be availed are for debt consolidation, home repairs and improvements, medical bills etc. The loan amount that can be availed under a home equity loans depend upon the borrower’s repayment ability, credit history, income status etc. The interest rate charged under home equity loans is low and the repayment tenure for home equity loans is up to 25 years. Since the repayment tenure is large the loan amount can be repaid in small easy monthly installments.

There are a considerable number of companies that are keen to get your home equity loan business so it pays to shop around. Another consideration is the location of your home Real estate has different value all over the country and its worth getting a home equity loan quote from a company local to your state.

Home equity loans can be availed by borrowers with bad credit history also. Any credit score below 600 is considered as bad credit by lenders. The various reasons for bad credit history are CCJs, IVAs, bankruptcy, arrears etc. Bad credit borrowers can avail home equity loans at flexible terms of repayment and comparatively interest rates.

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