Asked by Debbie  |  Submitted May 28, 2017

Is it possible to get a lower interest rate than 3.75% on a HELOC?

Our first mortgage is paid off, we are just paying off the home equity loan and wanted to reduce the interest rate.

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  Answers  |  1

May 30, 2017

HELOC pricing depends on several factors: Credit scores, Equity, Prime Rate, and the margin (the "markup" over prime rate).

Prime is 3.75% now, so to get a HELOC at 3.75% would basically mean you're borrowing at prime rate. It's highly unlikely a lender will go lower than prime, unless it's just for a short period (such as first year of the loan). If you can get 3.75%, you're good to go.

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