What are today's HELOC and home equity loan interest rates?
Summary
Homeowners can borrow money using HELOCs (home equity lines of credit) or home equity loans, which currently offer lower interest rates than credit cards and personal loans. These rates are expected to drop if the Federal Reserve lowers its rates later in 2026, making borrowing through home equity potentially more affordable.Key Facts
- HELOC and home equity loan rates are lower than most credit cards and personal loans right now.
- As of April 17, 2026, average interest rates are about 7.07% for HELOCs and around 8% for home equity loans of various terms.
- Home equity loans have fixed rates and provide a lump sum; HELOCs have variable rates and offer a line of credit that borrowers can use as needed.
- Payments on HELOCs are usually interest-only at first, then include principal after 10-15 years.
- Homeowners with at least $300,000 in home equity can use this to borrow money.
- Interest paid on these loans may be tax-deductible if used for eligible home repairs or renovations.
- Borrowing with home equity uses the home as collateral, so failure to pay could lead to foreclosure.
- Rates and terms vary by lender and borrower credit profile, so shopping around is important.
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