Asked by SHARON  |  Submitted October 26, 2017

What are the differences between the various HELOC products out there?

The interest rates seem so fluctuate so much.

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  Answers  |  1

January 18, 2018

Most HELOCs use the Prime Rate as the index, the margin is what is added to the index to determine the effective rate. This margin will vary from one firm to another and will also vary based on credit score and loan-to-value and loan amount. The other elements that can vary are annual service fees/overall loan term and also the length of time the lender allows "interest only" payments.

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