With interest rates 3 percentage points better on your mortgage, you save over $ 1,000 in annual debt service (for a loan of $ 50,000). Here are four tips on how best to obtain rate home equity loan.

Tip 1: Get your credit report: Even if your loan on the equity in your home as collateral to borrow, the rate at which you can still very much on your credit score. If you have not pulled your credit score in the months or years, go ahead and do it now. You can download a free copy of the report of the Federal Trade Commission cleared the download site.

Tip # 2: Brush your credit score: If you have bad credit or fair, improve your credit score only 50 points or if you save $ 1,000 or more annual payments of home-equity loan . Although the applicant may have with good credit at a rate of 2.1 percentage points below the prime rate, someone with a fair or poor credit can vary from 1 to 5 points above the base rate paid. Bonus: borrowers with better credit can often avoid the application fee or examination as well, which can represent significant savings.

Tip 3: Consider a credit line mortgage as an alternative: Before considering an application for home equity loan is a line of credit mortgage too. It is a good option if you do not know exactly how much you borrow in the coming years. The potential risk is that the rate is not fixed and is usually linked to prime.

Tip No. 4: Compare Prices: Once your credit score is in good shape, and you’ve decided that a mortgage to suggest the best place to get cash, I suggest starting with your current mortgage company, where the best rate. Then use them as a benchmark for comparison and online shopping for rates. There are a number of sites that allow you to compare rates. Before a loan on a particular site, you should read the fine print associated costs and fees to read.

For homeowners, a mortgage loan a good way to make money. For the best price, you must read and improve your credit score. Once you’ve decided that the time being entitled to apply for a loan can buy tickets on a credible site to compare different lenders will. And you should read the fine print before signing on the dotted line.