Why is the home equity loan rate going up while mortgage rate is going down?

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For at least the last couple days? is there chance home equity loan rate goes down?

  1. Reply
    May 1, 2011 at 5:46 am

    yes ye sye s

  2. Reply
    May 1, 2011 at 6:44 am

    its the rates that are used to calculate each. I think the home equity loans use a different index that the rates are pegged to.

  3. Reply
    May 1, 2011 at 7:40 am

    The two are not the same and have nothing to do with each other. The prime rate has gone up many times lately so all loan rates will follow.

    When you borrow money to buy a home the bank is not the one that loans you the money. Companies bid for these mortgages and when they have a lot of money that needs to be earning something then the rate will go down. When the money is tight then the rate will go up. They will tell the bank they will buy so many millions of dollars worth of mortgages at a given rate. There are several so the rates may not be all the same. Depending on your history the bank and holding co. will decide what company will take the risk.

  4. Reply
    May 1, 2011 at 8:05 am

    It depends on which index they are tied to. Some change very little, others are very volatile and change alot. Also, rates arent going down, they are really just hangin right about the same, not going anywhere. You need to figure out the index and watch it if you want to know more!

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