{"id":2648,"date":"2025-09-03T21:57:15","date_gmt":"2025-09-03T21:57:15","guid":{"rendered":"http:\/\/ft365.org\/index.php\/2025\/09\/03\/home-equity-loan-rates-hold-at-2025-lows-bankrate\/"},"modified":"2025-09-03T21:57:15","modified_gmt":"2025-09-03T21:57:15","slug":"home-equity-loan-rates-hold-at-2025-lows-bankrate","status":"publish","type":"post","link":"https:\/\/ft365.org\/index.php\/2025\/09\/03\/home-equity-loan-rates-hold-at-2025-lows-bankrate\/","title":{"rendered":"Home Equity Loan Rates Hold At 2025 Lows | Bankrate"},"content":{"rendered":"
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Very mixed movements on the home equity financing scene in the latest week. The average rate on a $30,000 home equity line of credit (HELOC) skyrocketed 80 basis points to 8.90 percent, according to Bankrate\u2019s national survey of lenders \u2014 though the increase reflects a particularly large lender ending its low introductory rate offers rather than any economic news or upsets. In contrast, the average rate on the benchmark 5-year $30,000 home equity loan was unchanged, holding at 8.22 percent \u2014 its low for the year.<\/p>\n

HELOC rates could well deflate with the advent of new promos, but even if they don\u2019t, the fundamental things still apply for home equity borrowers. \u201cHELOC promotions can offer a meaningful break on borrowing costs if you\u2019ve been waiting for the right time to take advantage. However, it\u2019s important to read the fine print and understand the limits of the offer,\u201d says Bankrate Financial Analyst Stephen Kates. \u201cDon\u2019t be caught off guard when the introductory rate ends, and be sure you meet all the eligibility requirements.\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>\n8.90%<\/td>\n8.13%<\/td>\n9.99%<\/td>\n8.38%<\/td>\n7.90%<\/td>\n<\/tr>\n
5-year home equity loan <\/td>\n8.22%<\/td>\n8.25%<\/td>\n8.52%<\/td>\n8.35%<\/td>\n8.22%<\/td>\n<\/tr>\n
10-year home equity loan<\/td>\n8.37%<\/td>\n8.41%<\/td>\n8.61%<\/td>\n8.49%<\/td>\n8.37%<\/td>\n<\/tr>\n
15-year home equity loan<\/td>\n8.24%<\/td>\n8.28%<\/td>\n8.57%<\/td>\n8.41%<\/td>\n8.24%<\/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 HELOC and home equity loan rates have declined substantially from their 2024 highs, although HELOC rates have rebounded somewhat from this spring, when they were under 8 percent. <\/p>\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>\n8.90%<\/td>\n<\/tr>\n
Home equity loan<\/td>\n8.22%<\/td>\n<\/tr>\n
Credit card<\/td>\n20.12%<\/td>\n<\/tr>\n
Personal loan<\/td>\n12.37%<\/td>\n<\/tr>\n<\/tbody>\n
Source: Bankrate national survey of lenders, Sept. 3<\/em>
<\/mark> <\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<\/div>\n

While average rates are useful to know, the individual 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 the size of your ownership stake. Lenders generally limit all your home loans (including your mortgage) to a maximum 80 to 85 percent of your home\u2019s worth.<\/p>\n

Keep in mind: Even if you\u2019re able to secure a favorable rate from a lender, home equity products are still relatively high-cost debt. <\/p>\n

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

A fixed-rate home equity loan offers a lump-sum payout and a predictable repayment schedule. <\/p>\n

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