Where To Find Cheap Money: Home Equity Line Of Credit

Mortgages get all the low-interest-rate attention, but a home equity line of credit is also available at ridiculously low rates. Here’s a report from The Courant’s Ken Gosselin:

For years, falling mortgage rates have spurred waves of home loan refinancing, as borrowers lucky enough to have equity in their houses or condominiums tapped into their home’s value for some cash.

But even with 15-year, fixed-rate home loan, a popular choice for refinancing, hitting a record low of 2.8 percent nationally in late July, there is another attractive option out there: the home equity line of credit.

Traditional mortgage rates have risen slightly in August, but the rates on equity lines of credit still remain well below 3 percent for borrowers with the best credit scores at some lenders. At TD Bank, for example, home equity lines of credit have been advertised as low as 2.75 percent.

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