Current HELOC & Home Equity Loan Rates: July 9, 2024—Rates Are Mixed (2024)

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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


60.00% LTV


80.00% LTV


90.00% LTV


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


60.00% LTV


80.00% LTV


90.00% LTV


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


60.00% LTV


80.00% LTV


90.00% LTV


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 July 8, 2024

Pros and Cons of a HELOC


Competitive interest rates that are lower than some other loan types

You can expect variable interest rates that change over time, which may make it difficult to manage your payments

You have consistent access to credit that they can use for emergency expenses or other quick costs

Lenders use your property as collateral, which means you can lose your home if you default on your loan

Interest payments may be tax deductible if you meet IRS guidelines and prove that you will use the funds to buy, improve or build a home

HELOCs can come with significant fees that range from at least 2% to 6% of your total loan costs fees

Borrowers looking to consolidate their debt payments can use a HELOC to pay off debts and improve their credit score

If the property value drops, you can owe more on your HELOC than your home is worth

5-Year Home Equity Loan Rates (60 Months)


60.00% LTV, $50K


80.00% LTV, $50K


90.00% LTV, $50K


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)


60.00% LTV, $150K


80.00% LTV, $150K


90.00% LTV, $150K


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)


60.00% LTV, $200K


80.00% LTV, $200K


90.00% LTV, $200K


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)


60.00% LTV, $250K


80.00% LTV, $250K


90.00% LTV, $250K


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)


60.00% LTV, $500K


80.00% LTV, $500K


90.00% LTV, $500K


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 July 8, 2024

Pros and Cons of a Home Equity Loan


You’ll pay a fixed interest rate that remains consistent during your loan term

Your home will be used as collateral for your loan, which places your property at risk of foreclosure if you can’t make your payments

You’ll receive a lump sum that can be used for big purchases such as a home renovation

Home equity loans have strict requirements that can make them difficult to qualify for

Home equity loans are unrestricted, meaning you can use them for almost any expense, including home renovations or auto repairs

Home equity loans come with several costs and fees that can add up and offset the benefits of a lower interest rate

Your interest payments may be tax deductible if they meet IRS guidelines

Your home’s overall value can drop during your loan term, which could cause you to owe more than it’s worth

What Is Home Equity?

Home equity represents how much you own of your home compared to what the bank or mortgage lender owns. If you’ve paid off your home in full, you have 100% equity.

You can utilize your home’s equity without paying off your home in full, whether through a home equity loan or a home equity line of credit (HELOC). You can use your home’s equity for home improvements, repairs, debt consolidation and educational costs, among other things.

Why Is Home Equity Important?

Two major ways you build home equity is when the value of your home goes up (appreciation) and the balance of your mortgage goes down. As you make ongoing, regular monthly payments to your mortgage, your home equity will increase and so will your wealth.

Borrowing against your home equity lets you use money for major financial needs, including:

  • Home improvements, upgrades or repairs
  • Consolidating debt
  • Making large payments on high-interest debt
  • Educational costs

What Is A HELOC?

Home equity lines of credit, or HELOCs, are loans that allow you to borrow against your home’s equity—the current market value of your home minus your remaining mortgage balance. When you get a HELOC, you can take the money available in installments as you need it, and pay interest only on what you use.

Find the Best HELOC Rates of 2024

Learn More

Current HELOC & Home Equity Loan Rates: July 9, 2024—Rates Are Mixed (2024)
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