Images by GetTyimages. Illustrations by bankrate
Home Equity credit lines and loan fees didn’t move much this week, according to Bankrate’s National Lenders Survey. Meanwhile, the home equity loan rate has been stable, with a home equity loan average of $30,000 at 8.36%, which remains unchanged at a low 2025.
The Federal Reserve has changed its key benchmark interest rates this week, even if the recent inflationary measure, the Personal Consumption Expense (PCE) Index, approaches the central bank’s 2% target. The Fed’s continued suspension reflects uncertainty regarding the tariffs and overall economic condition contracted in the first quarter of 2025.
Helocs and Home Equity Loans have fallen sharply from the highs reached in early 2024, particularly the Heloc Rate, which has not been seen since 2023.
| the current | 4 weeks ago | 1 year ago | 52-week average | 52 weeks low | |
|---|---|---|---|---|---|
| helic | 7.99% | 8.00% | 9.89% | 8.70% | 7.90% |
| 5 Years of Home Equity Loan | 8.36% | 8.38% | 8.66% | 8.46% | 8.36% |
| 10 Years of Home Equity Loan | 8.51% | 8.52% | 8.79% | 8.59% | 8.46% |
| 15 years of home equity loan | 8.41% | 8.42% | 8.79% | 8.54% | 8.37% |
| Note: The home equity rate for this study is assumed to be a $30,000 line or loan amount. | |||||
What is your home equity rate today?
Fees for Helocs and Home Equity Loans are driven by two major factors: This is a lender’s competition for minimum time conditions and Federal Reserve litigation. The Fed especially affects the cost of variable-rate products, including Helocs.
However, since Helocs and Home Equity Loans are linked to the home as collateral, these charges tend to be much cheaper than the interest charged on credit cards or personal loans.
Current hOmelette rate vs. other types of credit rates
| Average rate | |
|---|---|
| helic | 7.99% |
| Home Equity Loan | 8.36% |
| Credit Card | 20.12% |
| Personal loan | 12.43% |
| Source: National survey of lenders, May 7th | |
Of course, the individual offers you receive on a particular HELOC or a new home equity loan reflect additional factors such as creditworthiness. Then there is the value of your home and your ownership. Lenders generally limit all home loans (including mortgages) to up to 80-85% of the value of your home.
Fred Bolstad, head of retail lending at US banks, said that Paramount is “to pay off the loan as soon as possible,” so some borrowers may be more conservative to tap on their fairness. “For others, it’s all (increased) cash flow, so they want to make the most of their home.”
However, home equity products remain relatively high debt, according to Ted Rothman, senior industry analyst at Bankrate.
“Three years ago, the average HELOC rate was below 4%,” Rothman said. “If I lose my job, if I could regret it, if I could regret it, I wouldn’t borrow $50,000 for an 8% home renovation.
