The internet gives savvy borrowers plenty of tools to find the best HELOC loan deal and best HELOC rate. Even if you don’t intend to borrow from an on-line source, a few hours of internet HELOC research will put you in a much better position to deal with your local bank or credit union and may save you thousands of dollars. Here’s how:

1. Learn From Others - As you face the sea of potential HELOC lenders, know that millions of borrowers have gone before you in search of the best HELOC deals and they are starting to compare notes. As an example, The Fatwallet.com Financial Forum is one of the best resources available for savvy borrowers to explore. Do a search on “heloc” and read the insightful comments/critiques that forum members contribute concerning various HELOC loan products and features. A little time spent here will give you a good idea of the best HELOC features available, no matter which lender you settle on.

Current top picks from the Fatwallet Forums include: the Pen Fed HELOC and the Deep Green Bank HELOC. Dave Hanson, a regular Fatwallet.com contributor has even created a special Deep Green HELOC web page with in-depth details and research on the product’s features.

2. Learn From Bankers Themselves - As you might imagine, HELOC loans can be very complex. Federal and state laws, consumer proections, and myriad regulations combine to make an extremely convoluted subject area that even bankers sometimes need help with. The Bankers Online.com Information Vault is another great resource to explore. Follow this link and look under “heloc” for technical questions that bankers have raised and the answers to those questions. Study up on these issues and you may find yourself asking questions even your loan officer is unfamilar with.

3. Use Free HELOC Loan Data Comparison Tools - Bankrate is one of several websites offering a free comparisons of “top” competing HELOC products. These comparisons can give you a good idea of prevailing rates and current market conditions - both nationally and locally. Be aware that some comparison services are provided by mortgage brokers who stand to gain a fee at some point in the process. The information is often useful and shouldn’t be ignored; just be aware that it may not be totally unbiased.

Datatrac’s survey of over 15,000 bank and credit union HELOC rates provides a highly useful state-by-state comparison of the average HELOC rates offered by banks and credit unions.

4. Use Free HELOC Loan Calculators - Not too long ago the inner workings of loan amortization, payment calculations and APR’s were simply beyond the capacity of most consumers to either understand or verify. The internet has equalized the playing field by making a remarkable array of powerful (and free) financial calculators available to anyone. Here’s a HELOC calculator that helps you analyze the payments and tax benefits of HELOC transactions.

Thousands of otehr internet calculator tools can provide you with information to: 1) determine which loan features are most important to you, 2) perform an in-depth comparison of loan terms, 3) analyze worst case scenarios under different loan terms or, 4) verify all figures during the 3-day cancellation period afforded under federal law.

5. Check Lender’s Track Records - Simply typing a lender’s name into a search engine like Google can be very helpful in discovering whether the lender has a negative track record. Also, government websites like the ones listed below can help you uncover disciplinary records and enforcement actions taken against unscrupulous lenders :

- Federal Trade Commission (FTC) - Formal Actions Taken by Federal Consumer Agency

- Federal Deposit Insurance Corporation (FDIC) - Regulatory Agency for Banks

- National Credit Union Administration (NCUA) - Regulatory Agency for Credit Unions

6. Understand the Index and Margin - Be sure you understand the lender’s rate index and margin and how they work. Here’s a primer on HELOC loan indexes that would be useful to review.

7. Use the HELOC Loan Term Comparison Worksheet - Print out the free HELOC Loan Comparison Worksheet and use it to record and compare the HELOC loan features available from different lenders. The worksheet is comprehensive - completing it will ensure you have all the information to select the best HELOC loan available.

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