If you want to tap into your home's equity with a HELOC, here's how to find the best option right now.
Home values have skyrocketed in most markets across the nation over the last few years, leaving the average homeowner with a substantial level of home equity. And, when homeowners gain equity in their homes, it opens the door to borrowing from that equity for any number of expenses, from home renovations to education cost and start-up business expenses to consolidating high-interest debt.
After all, HELOC rates can vary significantly between institutions, as each lender sets its own rates, and may differ by 1% to 2% or more across different banks and lenders. And remember that you don't need to use your current home lender.Consider an interest-only HELOC during the draw periodMost HELOCs allow interest-only payments for the initial draw period before entering full principal and interest repayment, which can meaningfully reduce your upfront payment burden.
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