Figuring Out the Cost of a Home Equity Loan

It should be noted that one of the differences between a home equity loan and a home equity line of credit is the type of interest rate. Home equity loans have fixed interest rates, home equity lines of credit have variable rates that can increase or decrease depending. These factors can also determine the ultimate cost of taking out a home equity or line of credit.

For the most part, you won t know your exact costs until you sit down with your banker, but don t feel obligated, make sure you shop around for the best rates and terms.