From looking at the interest rates this week the home equity loan and home equity line of credit rates, have fallen slightly form they were this past couple of months is this going to last? Who knows? but it seems from reading some of the news feeds of other websites it may be down to the fact that lenders are finding the loan market beginning to go a little quiet (it probably has something to do with the 15 interest rate hikes the Federal Reserve has issued in this past 2 years) and theyre drumming up some extra business by offering lowering interest rates to get people to borrow.

The bad news! If you look carefully and work out your figures youll actually see that in the long run the interest rate is actually in step with the prime rate. So.. borrower beware if you thinking about taking a loan out soon it may seem attractive in the beginning but take your time and work out your figures before signing on the dotted line.

Here are 5 tips that could save you a lot of heartache

1. Beware of lenders offering a low monthly repayment as this may be a sign that youre actually only paying the interest on the loan the principal amount and you may then find yourself having to pay a large payment on completion of the loan otherwise known as a Balloon payment.

2. Beware of home contractors offering to do work on your home by organizing a cheap finance deal. These contractors are usually in cahoots with a lender and you my find yourself with a loan that wasnt as attractive as first seemed. And also you may be threatened by a contactor leaving your home unfinished unless you take out the loan.

3. Before signing all make sure that there are no hidden extras like added insurance policies or other large fees for example will you be charged if you want to pay off the loan quicker.

4. Dont forget you have 3 days to cancel your loan and receive your entire fee back. You can usually do this in writing and dont forget its your legal right to cancel if youve changed your mind.

5. Ask friends or other people you can trust where theyve gotten a loan from and if they were happy with it. Remember when you taking out a home equity loan youre putting your home at risk so take your time and if the loan sound too good to be true it probably is!