How is interest calculated on a home equity loan vs. a credit card loan?
May 4, 2010 by
Filed under home equity loan rates
I have an offer from a credit card company for 3.99% FIXED APR until the balance is paid off. I want to borrow $10,000 to build a deck and put a new roof on my home. I know that home equity loans have variable rates and I am in the top tier as for my credit score, so I would qualify for a low rate between 5%-7% I guess. What is the smartest way to borrow that money and why? CREDIT CARD vs. HOME EQUITY or even a HOME EQUITY LINE OF CREDIT…(I’m not exactly sure how that works though?) Thanks.
If you are a first time borrower of a home equity loan it is imperative that you have a checklist of essential questions that you need to ask each and every lender. The answers to these questions will provide a valuable reference to base your comparisons on. What’s the interest rate? Knowing this is crucial. The interest rate will determine
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