A recent report by Realtytrac shows that homes in Colorado have one of the highest foreclosure rates in the country. This is why it is so important to find a good interest rate on your Colorado home equity loan. The lower your interest rate is, the lower your monthly payments will be. Low payments mean less chance of running into default, and eventually foreclosure.
Watching Interest Rates prefab homes colorado springs
To get the best rate on your Colorado home equity loan, you will want to keep a close eye on interest rates to see what they are doing. Right now, the Fed seems to be holding rates steady, but that could change at any time. If you notice rates going down or if you hear rumors that they are going to rise, it may be a good time to apply for a Colorado home equity loan. By locking in your rate, you ensure that you will get a good deal for years to come.
Watch How Much You Borrow
One of the easiest ways to get the best interest rate is to watch how much you borrow when taking out a Colorado home equity loan. While it can be tempting to take out the largest loan you can, doing so will affect your interest rates. Most lenders charge tiered rates based your combined loan to value (CLTV) ratio. By borrowing just a few hundred or a few thousand less, you can lower this ratio and qualify for a better rate.
Find the Right Lender
The key to finding a good deal on a Colorado home equity loan is to find the right lender. A good lender will be willing to work with you and your credit history to get you a competitive interest rate. Keep in mind that there are many lenders who will be clambering to handle your Colorado home equity loan. Take time to make comparisons and find the best one.