Tap Hidden Secrets Best HELOC Rates California Offers
Factors Influencing HELOC Rates
Several key factors influence the rates offered on a HELOC:
1. **Credit Score**: A higher credit score can qualify you for lower interest rates. Lenders view borrowers with excellent credit as less risky, which can result in more favorable terms2.
2. **Loan-to-Value Ratio (LTV)**: This ratio compares your current mortgage balance with the appraised value of your home. A lower LTV ratio can lead to better rates since it indicates more equity in the property3.
3. **Economic Conditions**: Interest rates can fluctuate based on broader economic trends, including inflation and Federal Reserve policies4.