http://www.gettingmortgages.com/home-equity/home-equity-line-of-credit/home-equity-line-of-credit-rate/ Your home equity line of credit rate is guaranteed to increase in size. Don;t worry too much about your home equity line of credit rate, just know that its not always gonna be so low. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 A 6% introductory home equity line of credit rate? Thats incredible! Of course you'll take the opportunity to borrow home equity at that rate - equity loans usually charge around 8% APR these days, and chances are the rates are gonna rise by great amounts very, very soon. But a nationally increasing prime rate isn't the only think you have to contend with. Your home equity line of credit rate would have increased on its own. Keeping pace with your home equity line of credit rate How much will your home equity line of credit rates rise? Well, that all depends on what kind of deal you secure, what sort of lender you are working with and how intense you stay on top of your refinancing opportunities: If your home equity line of credit comes equipped with high rate caps - or no rate capos at all - you can expect your rates to increase dramatically over the years. if your lender attaches a prepayment penaltry to your HELOC they'll be more inclined to increase your rates. Even if there is a prepayment penalty, you should always be looking out for refinancing opportunities. Consolidate that HELOC in together with your initial mortgage and enjoy the security of a low fixed rate that will remain stable throughout your home owning experience. Volatility breeds affordability - but it also leaves you open to any rate increases in the country. Your home equity line of credit rate will increase over time - how much it increases and how you stop the increase is up to you. Getting mortgages, ditching mortgages We suggest a fully conscious attack with your HELOC. As you are still using the money, enjoy the low adjustable home equity line of credit rate and the interest only term. When you are satisfied with all your equity expenses, refinance your HELOC into a traditional equity loan or in with your first mortgage and secure a fixed rate. This way you'll enjoy the flexibility of the HELOC without getting burned too badly by the flexibility of the home equity line of credit rate. Sat, 26 Jul 2008 15:00:00 EDT