Skip to main content
The Trentini Team
my account
site map
our twitterour facebook page
Evansville  Real Estate - Homes For Sale | Indiana Realtors - Agents
Search Evansville & Newburgh, Indiana Properties
Featured Listings
Evansville Real Estate - Homes for Sale | Indiana REALTOR®
Newburgh Real Estate - Homes for Sale | Indiana REALTOR®
Relocating to Southwest Indiana?
Buying and Selling Southwest Indiana Homes
About The Trentini Team - F.C. Tucker Emge REALTORS® - Southwest Indiana REALTOR®

Real Estate Blog
Latest Posts

 Real Estate Blog 
Saturday, April 17 2010

If you are shopping for home equity interest rates, there are a few things for you to consider. One of the most important decisions that you will have to make is whether to go with a fixed or variable rate. Here are a few things to think about when it comes to choosing between fixed or variable rates.

Fixed Interest Rates

One option that you will find when shopping for home equity loans is the fixed interest rate. With this type of rate, you will be able to lock in a particular payment over the life of the home equity loan. With this method, you will be locking in an interest rate based upon the prevailing rate in the market at the time that you close the loan.

Variable Interest Rates

Another type of loan that you will commonly find in the market is the variable interest rate home equity loan. With this type of loan, the interest rate will fluctuate based upon a market index such as the prime rate. When this happens, your monthly payment will fluctuate up and down with the interest rate as well.

Forecasting Rates

One of the most important things for you to consider when choosing between these two types of loans is what you think interest rates will do in the future. If you believe that interest rates are as low as they are going to get for many years, you would most likely be better off to get a fixed interest rate and lock it in. This way, if the interest rates in the market increase significantly in the coming years, you will not be negatively affected. However, if you expect interest rates to go down in the near future, you might be better off signing up for a variable interest rate.


Many people wish to avoid any uncertainty in their home equity loan. In this case, you would be better off to utilize a fixed rate of interest. With a fixed interest rate, you will not have to worry about your payment changing from one month to the next. You will be able to plan exactly how much your mortgage payment will be over the long term. In some cases, those that sign up for variable interest rate loans find that their monthly payment will go up significantly when interest increases. In fact, many people have noticed that their payments have doubled in only a few years. Many people would not be able to afford doubling their current home equity loan payment. Therefore, if you do not feel like taking any risks, it would be to your advantage to go ahead and get a fixed home equity loan.

Saving Money Initially

Other people prefer to save money on the front end of a transaction. If interest rates for variable loans are currently lower, it could be enticing to go with that type of loan. This can allow you to save money on the front end and worry about changing interest rates later.

Posted by: Rolando Trentini AT 03:10 pm   |  Permalink   |  0 Comments  |  Email
Add to favorites

The Trentini Team
7820 Eagle Crest Bvd., Suite 200
Evansville, IN 47715
Office: (812) 479-0801
Cell: (812) 499-9234

Accredited Buyer Representative

Equal Housing Opportunity

Multiple Listing Service?



Pro Step Marketing

The Trentini Team is the sole owner of the information collected on this site. Neither The Trentini Team nor the team associates will sell, share, or rent this confidential information to others. Your privacy is the primary issue for The Trentini Team. 

By submitting personal information such as name, address, phone number, email address and/or additional data, the real estate client/prospect consents that The Trentini Team or their authorized representative may contact client/prospect by phone, U.S. Postal System, or e-mail whether or not client/prospect is participating in a state, federal or other "do not contact" program of any type.
Copyright© 2007 The Trentini Team, REALTOR®, All Rights Reserved.