In today's high-interest rate environment, getting a good home equity loan rate can be a challenge. However, with the right strategies, you can snag a competitive rate this August. Here are five expert-approved steps to help you secure a low-interest rate and save thousands over the life of your loan.

First, compare multiple offers from different lenders. Rates and eligibility requirements vary widely, so don't settle for the first offer you receive. "Don't be afraid to shop around and compare rates from multiple lenders," says Sean Lovison, CFP, CPA, and founder of Purpose Built Financial Services. Even if you need to pay a small application fee, getting a better rate can save you a lot over the long term.

Another key tactic is to negotiate the rate. The initial rate a lender offers you isn't necessarily its final offer. "Don't be afraid to negotiate and let the lenders know about your other offers," says Lovison. "There is always wiggle room."

When choosing a loan term, consider a shorter lifespan. A shorter loan term typically results in a lower interest rate, as lenders take on less risk. "A shorter lifespan of a loan will normally result in a lower interest rate," says Andrew Griffith, DBA and fellow associate professor of accounting at Iona University.

Your credit score also plays a significant role in the interest rate you receive. Lenders rely on credit scores to assess the likelihood that you'll repay the amount on time. "A higher credit score will normally result in a lower interest rate," says Griffith.

Finally, only borrow the amount you need. Lower loan amounts present less risk to lenders, which can result in better rates. "Don't borrow more than necessary," says Lovison. "Higher equity in your home often translates to lower interest rates."

By following these expert-approved tips, you can secure a low-interest rate on your home equity loan and save thousands over the life of your loan.

Get the Best Home Equity Loan Rate This August – Tips to Save You Thousands

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