What Home Equity APR Could This Person Expect?

Factual Questions
1

Just posting some stats for a friend who is considering refinancing their home equity loan from variable to fixed, in hopes that someone will let me know what a normal rate would be.

Desired Product: Home Equity Loan or Home Equity Line of Credit
Desired Loan Amount: $15K
Home Value: $200K
Mortgage Status: Paid Off
Current Loans Against Property: $15K
Annual Income: $24K
FICO Score: 701
Intent of loan: Pay off old loan against property.

Thanks in advance, FinanceDopers.

PS- Sorry if this was in the wrong forum. I couldn’t figure out if it should be IMHO or GQ. Lemme know if I was wrong.

2

Oh yeah. If it matters, the prospective borrower has no substantial debts or assets aside from the house. The borrower’s car was paid under the existing home equity loan.

3

24K a year and the $200k home is paid off?? :eek:

Wow, just wow…
Anyway, if you google “Home loan calculators” you’ll get at least a ‘ba-gillion’ or so links that can help your freind out with exactly this sort of thing. It’ll even tell you what your monthly payments would be as well.

4

At the bank that I work for you should expect a rate between Prime+.5 to Prime +1.75, or 7.25% - 8.50% Depending on how good your credit is. There are better deals offered for HELOC’s but they usually involve higher balances, closing costs (none with us), or a fee if you cancel your line within 2 years (which we also don’t have)

Thats the thing with banks, if you don’t pay it in interest charges you’ll pay it in fees.

5

Yeah. I know. I was surprised when I found out too.
That home really started appreciating after it was paid for, in cash, over a decade ago, and the household in question is very into living below your means.
That household’s current income is $24K, but ten years ago that household had $80K in annual income, etc.