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Article: Home equity loan rates, fees plummet
- Article from:
- Hoosier Banker
- Article date:
- August 1, 1998
- Author:
CopyrightCopyright Indiana Bankers Association Aug 1998. Provided by ProQuest LLC. (Hide copyright information)
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Interest rate margins on home equity lines of credit (HELOC) dropped to record lows during the past year, and fees dropped to new lows as well, according to the 1998 Home Equity Loan Study of the Consumer Bankers Association (CBA).
The average interest rate to consumers on HELOC was 1.27 percent over the prime rate at the end of 1997, compared to 1.41 percent a year earlier. The prime rate is 8.5 percent. Closing fees on lines averaged $216, down from $346 a year earlier, although 80 percent of borrowers had a majority of fees waived.
The CBA study shows a significant increase in bank loans offered at 100 percent or higher loan-to-value (LTV). Sixty-three percent offered some HELOCs with ...