You asked: What are some things I should know before I apply for a home equity loan or line of credit
We matched that to: What are some things I should know before I apply for a home equity loan or line of credit?
If you decide to apply for a home equity loan or line of credit, look for the plan that best meets your needs. Comparison shop and request home equity loan information from a variety of lenders – this will help ensure that your loan offer is reasonable.
Examine the terms and conditions of various plans, including the annual percentage rate (APR) and other fees and charges. Don't simply compare the APR of a home equity loan to that of a home equity line of credit, because the APR of a loan takes into account the interest rate and all fees paid, whereas the APR for a line of credit takes into account only the interest rate.
If you decide you no longer want the loan after signing the loan papers, federal law gives you three business days after signing to cancel the contract, and the lender is required to return any fees or charges you had paid - only if the loan is secured by your primary residence and is not used to purchase the property.
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