What are the benefits of having a fixed rate home equity loan or HELOC?
One benefit of taking out either a fixed rate home equity loan or HELOC on your property is that the interest on debt you pay off, such as credit cards is now usually tax deductible. The interest rate on the home equity loan or HELOC is usually lower than the interest rate on credit card debt. Another benefit of taking out a fixed rate home equity loan or HELOC is that it is sometimes an interest only loan, meaning you are only paying off the interest, giving you a lower payment each month. Check the rates on both fixed rate home equity loans and lines of credit when determining what is best for your situation. Read the fine print when looking for a fixed rate home equity loan or HELOC. Always understand the terms of either a fixed rate home equity loan or variable rate HELOC when shopping for either. Be aware of the maximum interest rate you can pay, and know about prepayment penalties. Lenders of these types of loans usually get a fee either at closing, or when the loan gets paid off
