Images by GetTyimages. Illustrations by bankrate
Turning back the recent rise, the average rate of the $30,000 Home Equity Line (HELOC) fell by 5 basis points this week. Bankrate National Lenders Survey shows 8.22%, close to the highest level this year. Conversely, the average rate for the $30,000 home equity loans remained unchanged and remained at 8.25%.
James Hooper, senior vice president of production at Quontic Bank, a New York-based digital home equity lender, said deciding whether to tap equity or not comes down to your financial goals and how you spend your money. “With the HELOC rate near the 2025 high, borrowers should weigh the flexibility of HELOC against the predictability of fixed-rate housing equity loans. Like continuous housing improvements, especially when HELOC has strong credit and stocks, like continuous housing improvements — but rate sensitivity is important.”
| the current | 4 weeks ago | 1 year ago | 52-week average | 52 weeks low | |
|---|---|---|---|---|---|
| helic | 8.22% | 8.14% | 9.18% | 8.60% | 7.90% |
| 5 Years of Home Equity Loan | 8.25% | 8.36% | 8.63% | 8.43% | 8.23% |
| 10 Years of Home Equity Loan | 8.40% | 8.52% | 8.77% | 8.56% | 8.38% |
| 15 years of home equity loan | 8.33% | 8.42% | 8.75% | 8.50% | 8.32% |
| Note: The home equity rate for this study is assumed to be a $30,000 line or loan amount. | |||||
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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 | 8.22% |
| Home Equity Loan | 8.25% |
| Credit Card | 20.12% |
| Personal loan | 12.65% |
| Source: National survey of lenders, June 11th | |
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.
