Choosing between a HELOC and a personal loan often comes down to interest rates. HELOCs, which use your home's equity as collateral, have seen rates decline over the past year. Personal loans, on the other hand, are unsecured and their rates depend on your creditworthiness.
Currently, HELOC rates may be more attractive than personal loan rates for some borrowers. However, it's essential to compare offers from multiple lenders for both types of loans. Factors like your credit score, loan amount, and repayment terms will influence the final rate you receive. Remember to consider any fees associated with each option, as these can impact the overall cost of borrowing. Consult with a financial advisor to determine the best borrowing strategy for your specific situation.
HELOC vs. Personal Loan: Which Offers Lower Rates Now?
Figuring out the best way to borrow money can be confusing. Home equity lines of credit (HELOCs) and personal loans are two popular options, but their interest rates can change. HELOC rates have generally been falling recently. This article compares current HELOC and personal loan rates to help you make an informed decision about which might be the cheaper choice for your needs.
Source: Read the original article at CBS