Four Ways to Save Money on a Home Equity Loan

A wise man once said, "Leave no stone unturned." While said wise man was probably speaking in general terms, his words of wisdom also apply to saving money on home equity loans. By following these four tips, you can conduct a thorough, disciplined search for a home equity loan, and save yourself some serious cash in the process.

1. Show me the home equity loan rate. One thing is for certain: lenders can never finance too many loans. Start your search by contacting the lender who holds your first mortgage. Tell them that you're shopping for a home equity loan and that you'd like to know the best rate that they can offer you, and stay with them if the price is right. You'll be surprised at how far they'll stretch to keep your business with them.
2. The more, the merrier. Mortgage brokers sometimes get a bad rap; but the ones who are reputable and experienced can really help you. Because they have access to a wide range of lenders, they can quickly do your comparison-shopping for you.
3. Go for broker. If you don't choose a broker, make sure that you check out numerous lenders. Screen as many as possible, checking on rates and closing costs. The Internet is particularly helpful in this arena, allowing you to shop many lenders in a short period of time.
4. Who's on first? Your first question when shopping for a home equity loan is, "What's the rate?" But don't stop there. Make sure that you ask about all the closing costs-especially fees-that are involved with a home equity loan or home equity line of credit (HELOC). These can vary greatly from lender to lender.

By doing your research, you'll have indisputable proof that the wise man who leaves no stone unturned will find a honey of a home equity loan. The wise man, of course, will be you.