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Zero Cost Conversions become New Option for Credit Line Borrowers |
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Monday, 25 September 2006 |
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When the Federal Reserve decided to leave short-term interest rates unchanged, consumers with floating-rate home equity lines avoided a pinprick of pain they've gotten used to. The average home equity credit line now carries an interest rate close to the bank prime. Many equity line borrowers have seen their rates nearly double in the past two years, leading large numbers of them to simply bail out of their floating-rate notes.
When the Federal Reserve decided to leave short-term interest rates unchanged, consumers with floating-rate home equity lines avoided a pinprick of pain they've gotten used to. The average home equity credit line now carries an interest rate close to the bank prime. Many equity line borrowers have seen their rates nearly double in the past two years, leading large numbers of them to simply bail out of their floating-rate notes. |
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