A loan that is borrowed against the equity of the property with an interest rate that is adjusted periodically in accordance with prevailing market conditions |
A variable rate home equity loan has an interest rate that is based on one of a number of indexes. These indexes include treasury notes and bills, the Federal Housing Finance Boards National Average mortgage rate, which is an average rate for loans closed, the average interest rate paid on jumbo certificates for deposit, or the costs of funds for the specific lender. As an adjustable rate mortgage, the finances of this type of loan are constantly fluctuating.
Why would I want a Variable Rate Home Equity Loan?
Advantages of a variable rate home equity loan are the lower initial rates, ability to qualify for a larger loan or for a loan faster, ideal for home buyers whom only intend to stay in the home for a few years. A home equity loan is essentially a loan that is borrowed against the equity of your home, using the equity as collateral. Seeing that the home equity loan has collateral, these loans are often considered to be secured debts. With a secured debt, mortgage lenders are able to offer home owners a lower rate due to the security of the loan.
Available as a lump sum or a revolving line of credit, a home equity loan is a popular choice among home owners looking to spend a large sum of money. With a variety of uses, such as debt consolidation, tuition for family members, medical bill payments, and home repairs, home equity loans offer a flexible, affordable solution to homeowners’ everyday needs. For over 20 years, East West Mortgage has been ensuring that homeowners nationwide are getting the mortgage deals they deserve. With competitive low rate, quality customer service, and a team of knowledgeable loan officers, East West Mortgage has been able to grow into one of the largest mortgage brokerages in the nation. The satisfaction of our clients is our main priority and our loan officers go above and beyond to ensure that you are content. For more information on a variable rate home equity loan, call one of our loan officers to get started today!
