Interest HELOC – Choosing between HELOC interest rates

What kind of HELOC interest rate did you receive when you established your home equity line of credit? I hope that you did as much research as I did because there are certainly a lot of variables out there amongst the different lenders. I did my homework all right. I found out all about draw periods and repayment structures, fixed and variable rates and a whole host of other terms that I had no idea even existed. Ultimately, I ended up with a HELOC interest rate that was better than what I had hoped it could be and I learned a lot during the process.

Benefits of a HELOC
A lot of folks when they need money for home improvement projects or for paying college tuition first look at how to refinance mortgages that they already have in place. I considered that too, but I found the benefits to a HELOC type of loan too good to pass up. I could draw on the funds over a period of about ten years, instead of having to receive the entire payment as a lump sum. I only had to pay interest on the actual amount I had borrowed, which worked out pretty well, because the addition to my house was going to be spread out over a year or two and it didn’t make sense to me to pay interest on money that essentially would just be sitting in the bank for a year or two.