Factors to consider before you select your ideal home equity loan
Check Your Credit Score
See if your credit score matches the lender's requirements. Some lenders accept scores in the 600s, while others have higher standards.
Compare Interest Rates and Fees
Different lenders can have varying interest rates and fees. The annual percentage rate (APR) takes into account both rates and fees, so it's important to compare them.
Assess Your Home Equity
Find out how much of your home's value you can access. Some lenders let you borrow up to 90% of the value, while others limit it to 80%.
Calculate Debt-to-Income Ratio
Calculate your debt-to-income ratio by dividing your monthly obligations by your monthly income. Different lenders have different thresholds for this ratio, which affects your eligibility.
Determine Your Loan Amount
Decide how much you need to borrow. Lenders offer different loan sizes, ranging from $25,000 to $500,000, so consider your specific needs