If you have been looking for good loan opportunities in today’s high-interest landscapeyou may have found that the choice is limited. Credit cards may be worth considering, but the average credit card interest rate is currently approaching record highs – which is driving up the cost of borrowing enormously. Personal loans are another option, but with interest rates currently averaging over 12% and caps on the loan amount, these loans can also be a lackluster option.

One option that stands out, however, is the use of the equity of your homeIf you are a homeowner with equity in your home, Home loan or a Home Equity Line of Credit (HELOC) could allow you to borrow the money you need at an affordable rate (especially when compared to other options). This is because these loans are secured by the value of your home, which usually results in more favorable terms.

Most homeowners currently have a significant amount of usable equity available – about $200,000 on average – meaning this option offers significant borrowing potential. But if you’re looking to tap into your home’s equity this fall, it’s still important to find the best deal possible. Below, we’ll show you how to do that.

Want to access your home’s equity? Compare the best home loan options here.

How to get the best deal on a home loan this fall

Use these strategies to get the best deal on a home loan this fall:

Lock in an interest rate after the Fed’s interest rate decision in September

Given the cooling of inflation over the past four months, the Federal Reserve is now largely expected to lower the key interest rate by about 0.25% during the September 17-18 meeting – which would mark the first rate cut of the year. If that rate cut comes to pass, it could potentially lower the cost of home loans, albeit only slightly.

For example average interest rate for home loans is currently at 8.52%, and if home equity loan rates drop 0.25% in September, that could mean you get an interest rate of 8.27% instead. Waiting to take out a home equity loan until after that decision could save you the interest costs associated with your loan. Remember, interest rates can change daily and are not just influenced by the Fed, so you should be prepared to act quickly.

Find out how affordable today’s home loan interest rates can be.

Don’t limit yourself to one type of lender

Don’t settle for the first offer you get – and don’t limit yourself to just one type of lender. Take the time to Find out about your options and compare rates, conditions and fees from multiple lenders. These include traditional banks, credit unions, and online lenders.

After all, each lender sets their own interest rates and each may have different criteria for evaluating borrowers. This means that one lender might consider you a well-qualified borrower and offer you the best interest rates, while another might not. So casting a wide net can help you find the most competitive deal.

Improve your credit score before applying

Your creditworthiness plays an important role in determining the interest rate you will be offered on a home loan. Before you apply, it is therefore a good idea to take steps to improve your credit score. This may include paying off existing debts, Correcting any errors in your credit report and avoid new credit applications in the period leading up to your home loan application. After all, even a small improvement in your credit score can result in significant savings over the life of your home loan.

Increase the value of your home through strategic improvements

Before Applying for a home loanyou should also consider strategic improvements to your property. Usually required to have an assessment This happens before your home loan is approved. If the appraisal shows a higher home value, it can potentially increase your available equity and improve your loan-to-value ratio. This, in turn, can lead to better loan terms.

Focus on high-impact, low-cost improvements like minor kitchen or bathroom renovations, new paint, or improved landscaping. Just make sure all improvements are completed and can be included in the appraisal before you apply for the home equity loan.

Negotiate fees and closing costs

Do not assume that the fees and closing costs associated with a home equity loan are set in stone. Many lenders are willing to negotiate these costsespecially in a competitive market. For example, you may ask for a waiver or reduction in application fees, appraisal costs, or closing costs. Some lenders may be willing to make concessions to win your business, especially if you have a strong credit profile or are borrowing a significant amount.

The conclusion

Leveraging your home equity might be the best way to borrow money right now. While we’re still dealing with a high-interest environment overall, rates for this type of borrowing are low — especially compared to the other options. Most homeowners also have significant home equity right now, so if you need to borrow a large sum, your home’s equity could make it possible. Just make sure you implement these strategies during the borrowing process to get the best possible deal on a home equity loan this fall.