{"id":1220,"date":"2025-07-09T23:52:28","date_gmt":"2025-07-09T23:52:28","guid":{"rendered":"https:\/\/ft365.org\/index.php\/2025\/07\/09\/helocs-and-home-equity-loan-rates-flat-this-week-bankrate-2\/"},"modified":"2025-07-09T23:52:28","modified_gmt":"2025-07-09T23:52:28","slug":"helocs-and-home-equity-loan-rates-flat-this-week-bankrate-2","status":"publish","type":"post","link":"http:\/\/ft365.org\/index.php\/2025\/07\/09\/helocs-and-home-equity-loan-rates-flat-this-week-bankrate-2\/","title":{"rendered":"HELOCs And Home Equity Loan Rates Flat This Week | Bankrate"},"content":{"rendered":"
\n

Home equity loan rates stayed put as the nation moves into mid-summer. The average rate on a $30,000 home equity line of credit (HELOC) was unchanged at 8.27 percent for the fourth straight week, according to Bankrate\u2019s national survey of lenders. The average rate on the $30,000 home equity loan also held steady at 8.26 percent for the third week in a row.<\/p>\n

Since June of this year, average rates of HELOCs and home equity loans have been hovering in the same range \u2014 and are almost identical. So, how can homeowners decide which home equity product is the best option for them? <\/p>\n

It depends partly on the reason for borrowing. \u201cHomeowners with substantial equity who know exactly how much they need to borrow are ideal\u00a0candidates for home equity loans. These loans are best for one-time, large-scale expenses like a full kitchen remodel,\u201d says Eduardo Berain, executive vice president of banking, investments and insurance at Frost Bank, a Texas-based lender.\u00a0<\/p>\n

But the borrower\u2019s personal finances can be significant too. \u201cHome equity loans are good options for homeowners with consistent cash flow,\u201d Berain continues. \u201cIf a homeowner is expecting a financial windfall soon \u2014 for example, a bonus \u2014 a HELOC may be a better option.\u201d<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/th>\nCurrent<\/th>\n4 weeks ago<\/th>\nOne year ago<\/th>\n52-week average<\/th>\n52-week low<\/th>\n<\/tr>\n<\/thead>\n
HELOC<\/td>\n8.27%<\/td>\n8.22%<\/td>\n9.17%<\/td>\n8.53%<\/td>\n7.90%<\/td>\n<\/tr>\n
5-year home equity loan <\/td>\n8.26%<\/td>\n8.25%<\/td>\n8.60%<\/td>\n8.40%<\/td>\n8.23%<\/td>\n<\/tr>\n
10-year home equity loan<\/td>\n8.42%<\/td>\n8.40%<\/td>\n8.74%<\/td>\n8.54%<\/td>\n8.38%<\/td>\n<\/tr>\n
15-year home equity loan<\/td>\n8.35%<\/td>\n8.33%<\/td>\n8.73%<\/td>\n8.47%<\/td>\n8.32%<\/td>\n<\/tr>\n<\/tbody>\n
Note: The home equity rates in this survey assume a line or loan amount of $30,000.<\/em><\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<\/div>\n

What\u2019s driving home equity rates today?<\/h2>\n

Rates on HELOCs and home equity loans are being driven primarily by two factors: lender competition for new customers and the Federal Reserve\u2019s actions. The Fed especially impacts the cost of variable-rate products like HELOCs.<\/p>\n

Both HELOCs and home equity loans have declined substantially from their highs reached at the beginning of 2024, although they have moved off the lows they achieved this year. Bankrate Chief Financial Analyst Greg McBride still forecasts that rates will decline in 2025 \u2014 especially those on HELOCs, potentially to their lowest level in three years.<\/p>\n

\n

<\/p>\n

\n

Unlock your home\u2019s value <\/h3>\n

Achieve your financial goals with predictable payments on a lump-sum home equity loan.<\/p>\n

Explore offers <\/p>\n<\/div><\/div>\n

Current home equity rates vs. rates on other types of credit<\/strong> <\/h3>\n

Because HELOCs and home equity loans use your home as collateral, their rates tend to be much less expensive \u2014 more akin to current mortgage rates \u2014 than the interest charged on credit cards or personal loans, which aren\u2019t secured.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
\u00a0Credit type<\/th>\nAverage rate<\/th>\n<\/tr>\n<\/thead>\n
HELOC<\/td>\n8.27%<\/td>\n<\/tr>\n
Home equity loan<\/td>\n8.26%<\/td>\n<\/tr>\n
Credit card<\/td>\n20.13%<\/td>\n<\/tr>\n
Personal loan<\/td>\n12.64%<\/td>\n<\/tr>\n<\/tbody>\n
Source: Bankrate national survey of lenders, July 9<\/em> <\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<\/div>\n

Of course, the individualized offer you receive on a particular HELOC or new home equity loan reflects additional factors like your creditworthiness and financials. Then there\u2019s the value of your home and your ownership stake. Lenders generally limit all your home-based loans (including your mortgage) to a maximum 80 to 85 percent of your home\u2019s worth. <\/p>\n

Even if you are able to secure a favorable rate from a lender, home equity products are relatively high-cost debt, notes McBride. \u201cMany homeowners are sitting on a mountain of home equity, but borrowing against it is still costly, with the average rate still over 8 percent and many lenders charging double-digit interest rates,\u201d he says. \u201cThis is not the low-cost form of borrowing that homeowners had become accustomed to for many years. <\/p>\n

\u201cToday\u2019s rates are nothing to get excited about,\u201d he adds. So if you must borrow, have a game plan for paying it back.\u201d<\/p>\n