equity home loan loan rate
New home-equity loan from RBTT
RBTT Bank is set to launch a new loan product, Home Equity Plus, which will allow customers to use the equity in their homes to access consumer credit, coming on the heels of the recent launch of the bank's loan summer loan campaign a different product which offers a payment holiday of three-months at the outset.
The product, which RBTT is touting as being unique in the market, comes with a maximum fixed-term repayment of up to 12 years, and allows consumers to borrow up to 75 per cent of the appraised value on the property less prior charges at the interest rate of 19.5 per cent on the reducing balance.
A DEMAND
RBTT's general manager for retail banking, Loren Edwards, told Sunday Business: "We have seen a demand by our customers for such a product. What we are trying to do is position it as a unique home-equity product which doesn't exist in the market at this time."
The loan comes with a range of special offers for consumers such as a three months moratorium on principal payments, partial draw-down arrangements and automatic monthly savings of a minimum of 10-per cent of the monthly payment in a savings account for fixed-term facilities.
More equity home loan loan rate info
Use Your Home Equity Wisely
Web sites like www.LowerMyBills.com make it easy to find and compare various loan options. Here are some tips on how to use your home equity wisely.
* Pay off outstanding debt - "Credit card interest rates can be 10 or more percentage points higher than home equity loans or line of credit, so if you are dealing with mounting debt, it can make sense to pay off those credit cards using a lower-interest home equity loan," says Coffin. Just make sure to cut up the credit cards first.