A home equity loan is pretty much the same thing as a second mortgage on a home.
The loan amount is based on a percentage of what the home is worth and the amount of money the home owner has already paid on it (aka "the equity").
These loans can be used for whatever the borrower needs.
They can be used for home repairs, remodels and renovations, they can be used for medical bills and to clear up old debts, they can be used to open businesses or buy cars.
Home equity loans often sound like a great option for people who are in financial distress.
The only catch is that the home itself is usually put up as collateral to secure the loan.
This means that the borrower will lose his or her residence if he or she defaults on the loan.
The best way to make sure that you get the best home equity rates available is to do a bunch of research before you sign any papers.
Talk to all of the lenders in your area.
Ask them how much you qualify for and what interest rate they prefer to use.
Learn about the different interest rates used in home equity loans and make sure you understand how they work.
Always ask if the lender will charge you extra for the various activities involved in getting a loan, namely: legal fees, processing fees, etc.
You will also want to ask about repayment plans.
Make sure you know how each lender operates and what they will charge.
You might also want to get a list of references to check up on.
Talk to the lender's references and see what kind of an experience they had.
Compare each of the quotes you get from each of the lenders.
Compare things like repayment periods and fees.
You also might want to think about how you felt during your conversations with your lenders.
Was there one lender that you felt particularly comfortable with? The best way to get the best home equity rates is to do your research.
Know what is available to you.
The more you know about what is available, the more likely you are to get a deal you feel comfortable with.