There are many good reasons to tap into your home's equity; consolidating higher interest debt and making home improvements are just a few. However, these days getting access to home equity is tough – lending practices have definitely tightened. Your FICO® score is most likely going to play a key role in determining if you get approved for a home equity loan, and if so at what rate.
Enter the amount of equity you'd like to use and see how your FICO score can affect your monthly payments.
Interest rates accurate as of May 17, 2013.
Make sure you know your score!
Knowing that a good FICO® score can save you hundreds of dollars each year when using your home's equity, can you afford not to know yours? Most lenders that provide home equity loans will look at your FICO scores from TransUnion, Equifax and Experian (currently, Experian FICO scores are not available for consumers to purchase) when evaluating your loan application. myFICO recommends that you ask your lender what your FICO scores need to be to qualify for their best rates and then check your scores. If your FICO scores aren't high enough, you may be paying much more each month to repay your equity loan. Knowing your FICO scores will help you make the best decision.
"Several years ago my business took a turn for the worse and I did the worst thing possible by using credit cards and an equity line to meet employee payroll and expenses...It was not too long before the credit cards and equity line were maxed out and then, were not being paid timely."
With FICO® Standard you get:
Your FICO® score from your choice of Equifax or TransUnion. You'll get a full explanation of your FICO score as well as factors causing your score to be what it is. FICO Standard also provides you with a view of how lenders see your specific FICO score when making lending decisions.
Your credit report from your choice of Equifax or TransUnion. Each credit report contains information on your credit accounts, a listing of those companies accessing your credit file and more. We'll also flag any accounts that are hurting your FICO® score.
The FICO® score simulator which analyzes your personal credit information and can help you understand the impact of any of your future actions such as paying off a credit card or opening a new account.