Velocity Finance - Home Equity Loan Rate

Home Equity Loan Rate

When you talk about a home equity loan you are probably talking about tens of thousands of dollars - a lot of money on anyone' scale. You'd expect to have some say in the matter, be able to bargain dow the home equity loan rate. After all, you are the only paying your lender for the service, and when its such an important, high volume service you should be cut a little slack. And thats just the problem - there is no slack - and today's home equity loan rates are about as low as they can possibly go.

Dragging down the bottom feeders

How can you lower your home equity loan rate when its already right at prime levels? There is so much competition, so many lenders and so much opportunity for equity growth that your virtually guaranteed a low home equity loan rate even if you have such glaring shortcomings as bad credit, high debt to income rations or zero plan for your use of home equity. Money is being shoved into hands all the time, to all types of people - new home owners who have not proven themselves in the financial arena are being approved for up to 125% of their homes value. The promise of increased equity is virtually guaranteed in today's market - problem is your loans aren't just for today's market place.

Why the home equity loan rate is so low

Here at Velocity FInance we are not afraid to take a risk - when we see something happening in the home loans industry we'd rather make a mistake by addressing it than making a bigger mistake by ignoring its presence. We believe your home equity loan rate is so low today because the lenders know the rates are only going to increase - and so will their profits once yo are inside the loan. Most loans today are ARMS, meaning their rates will adjust over time. If a lender can attract more homeowners to their loans by promising lower initial rates - knowing full well that rates or going to increase in the very near future - the more power to them. And more power to you to see what they are doing and to make your own judgments without the glaring promise of low rates.