Current HELOC & Home Equity Loan Rates: November 25, 2024—Rates Are Mixed

Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes.

A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home’s value and pay that amount back in monthly installments. A home equity line of credit is a variable-rate second mortgage that draws on your home’s value as a revolving line of credit.

Both options use your property as collateral for your payments, which means your lender can seize your property if you can’t repay what you borrow.

Related: Best Home Equity Loan Lenders

$100K HELOC Loan Rates

—Ideal for Medium-Sized Projects

A $100K HELOC is suitable for more extensive renovation projects or other significant financial needs. Compare the rates and terms to find the best fit for your situation.

$250K HELOC Loan Rates

—Access More Funds for Major Investments

For larger projects or investments, a $250K HELOC provides the necessary funds with various LTV options. Explore these rates to determine the right balance between borrowing capacity and risk.

$500K HELOC Loan Rates

—Maximize Your Borrowing Power

If you have substantial equity in your home and need significant financing, a $500K HELOC offers a great deal of borrowing power. Evaluate these options to find the optimal rate and term for your goals.

*Data accurate as of November 22, 2024

Pros and Cons of a HELOC

5-Year Home Equity Loan Rates (60 Months)

A 5-year term offers a shorter repayment period with typically higher monthly payments. These products are suitable for borrowers looking for a quicker payoff.

10-Year Home Equity Loan Rates (120 Months)

With a 10-year term, borrowers can enjoy a balanced monthly payment while still building equity quickly. 10-year home equity loans are ideal for medium-sized projects or financial needs.

15-Year Home Equity Loan Rates (180 Months)

A 15-year term provides lower monthly payments compared to shorter terms, offering more affordability while still progressing toward your financial goals.

20-Year Home Equity Loan Rates (240 Months)

Offering longer repayment and lower monthly payments, 20-year home equity loans are suitable for larger investments and long-term financial planning.

30-Year Home Equity Loan Rates (360 Months)

The 30-year term maximizes affordability with the lowest monthly payments. These options are best for substantial borrowing needs and long-term investments.

*Data accurate as of November 22, 2024

Pros and Cons of a Home Equity Loan

Why Is Home Equity Important?

The more home equity you have, the higher your net worth rises. Building wealth is vital to having long-term financial health, and home equity is one way to build wealth.

Every time you make a mortgage payment, you increase your home equity, or how much you own of your home. The more equity you have, the more wealth you amass.

How Does a Home Equity Loan Work?

Your equity in your home comes from how much you’ve paid on your mortgage. The longer you’ve been paying off your mortgage, the more equity you have. You can tap into that equity through a home equity loan.

A home equity loan is paid out in a lump sum that you can use for home improvements, home repairs, debt consolidation or another major expense. The amount you’re approved for is based on how much equity you have in your home, your credit score and history, and how much you need.

Different home equity lenders offer different repayment terms, but longer repayment terms usually mean lower monthly payments. This might be helpful for you if you’re paying both your original mortgage and a home equity loan at the same time.

How Do I Calculate Home Equity?

You’ll calculate your home equity by taking your home’s current value—based on its most recent appraisal—and subtracting it from your current mortgage balance.

For example, say your home is valued at $500,000 and your mortgage’s outstanding balance is $250,000. This would mean you have $250,000 in home equity, and your loan-to-value ratio (LTV) would be 50%. If you’re looking for a home equity loan or line of credit, lenders usually only approve up to a certain LTV ratio. For example, some lenders require 80% LTV or less.