question about home equity loan

need to do renovations on the house. I was thinking of taking out of savings, but it looks like the rates are pretty good for home equity loan.

There are quite a few different types, one year variable, 3 year variable, etc. some look like they have prepayment penalties. any insight on this before I call our mortgage company?

I want an idea before I call them.

Thanks!

Re: question about home equity loan

We looked into a home equity loan, but wanted a fixed rate. Have an idea of the term of the loan (we were looking at 15 year) and amount. We weren't sure between $25-35k. What we found out is the more we borrowed the better our rate would be. And for us there was no prepayment penalty (just like our mortgage).

Re: question about home equity loan

My recommendation would be to shop around. I started with my bank (TD - personal accounts), then tried Chase Bank who holds my mortgage - and ended with a far better loan from People's Bank. They doubled what the others offered me in terms of loan amount and had great terms in general. In my case, it really paid to go with a bank that had a real local/community commitment. The big banks couldn't hold a candle to them….

(I only closed my HELOC about 4 weeks ago - so this is very recent.)