Images by GetTyimages. Illustrations by bankrate
Home equity rates are again on the upward course. In the most recent week, the average rate for the $30,000 home equity line (HELOC) rose 13 basic points to 8.27%, according to Bankrate’s National Lenders Survey. Meanwhile, we also chopped our home equity loan, but it became much more modest. It’s just one basis point. This brings an average rate of 8.25% for home equity loans of $30,000, which is significantly lower than when it first began in 2025.
It looks like the rates are rising, but is Helocs still a good option for homeowners? “Whether now is a good opportunity to consider taking out HELOCs depends on customer tolerance for rate fluctuations and (their) immediate cash needs,” says Eric Schmidt, digital channel executive at Chase Home Lending. “Most HELOCs have variable interest rates, meaning that so does monthly payments. If borrowers are prepared to manage high payments so that their fee environment is affected, HELOCs could be a good option to harness the fairness they have accumulated.”
| the current | 4 weeks ago | 1 year ago | 52-week average | 52 weeks low | |
|---|---|---|---|---|---|
| helic | 8.27% | 7.99% | 9.18% | 8.62% | 7.90% |
| 5 Years of Home Equity Loan | 8.25% | 8.36% | 8.60% | 8.44% | 8.23% |
| 10 Years of Home Equity Loan | 8.40% | 8.51% | 8.76% | 8.57% | 8.38% |
| 15 years of home equity loan | 8.33% | 8.41% | 8.74% | 8.51% | 8.32% |
| 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?
Prices for Helocs and Home Equity Loans are driven primarily by two factors: Lender competition and federal reserve action for new clients. The Fed affects the cost of variable rate products, especially for HeLocs.
While they were ticking recently, HELOC and home equity loans fell sharply from their hit highs in early 2024, reaching HELOC rates that were not seen, especially after 2023.
Current hOmelette rate vs. other types of credit rates
Because Helocs and Home Equity Loans use their homes as collateral, the fees tend to be much cheaper than the interest charged on credit cards or personal loans.
| Average rate | |
|---|---|
| helic | 8.27% |
| Home Equity Loan | 8.25% |
| Credit Card | 20.12% |
| Personal loan | 12.65% |
| Source: National survey of lenders, June 4th | |
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.
Bankrates Senior Industry Analyst Ted Rothman said that even though he can secure a good rate from lenders, he still remains a relatively high-cost liability.
“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.
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