Reda is looking for a home equity loan. What factors should she look at when deciding which loan is best for her/11984163/ea85bca1? utm_source=registration

1. Interest rate

2. she has to check what kind of home equity loan she wants. Fixed rate loan or home equity line of credit.

3. Reda has to check if the loan is serviceable.

Explanation:

1 First of all Reda has to take a good look at the interest rates. The loan with the lowest interest rate is the best to go for. The loan she can pay over in a short period of time.

2 Reda should also know the kind of home equity loan she is applying for.

Fixed rate loan:

This gives her a single payment amount. It has to be repaid at an agreed period of time at an agreed interest rate. The payment and loan are the same throughout the period of the loan.

Home equity line of credit:

This works like a credit card and may come with one in some cases. Reda would be pre-approved for a particular spending limit and she can make withdrawal whenever she needs money through the credit card. Monthly payment differs on borrowed money and the current interest rate.

3. She has to consider her ability to service the loan. She has to make sure her income monthly is able to meet the loan obligation. Otherwise the home would be at risk.

4. She has to compare the rates of the loan institutions that are offering her a loan.