What is the difference between a home equity loan and a HELOC?

A home equity loan provides a lump sum with a fixed interest rate and fixed monthly payments. A HELOC (Home Equity Line of Credit) works like a credit card - you can draw funds as needed up to your credit limit, typically with a variable interest rate. HELOCs often have a draw period (usually 10 years) where you can access funds, followed by a repayment period.

How much can I borrow with a home equity loan or HELOC?

Most lenders allow you to borrow up to 80-90% of your home's current value, minus what you still owe on your mortgage. For example, if your home is worth $400,000 and you owe $200,000, you might be able to borrow up to $120,000-$160,000. The exact amount depends on your credit score, income, and debt-to-income ratio.

What are the current home equity loan and HELOC rates?

Home equity loan rates currently start around 7.25% for well-qualified borrowers, while HELOC rates start around 6.75%. Rates vary based on your credit score, loan-to-value ratio, and market conditions. HELOCs typically have variable rates tied to the Prime rate, while home equity loans offer fixed rates.

What are the requirements to qualify?

Typical requirements include: minimum credit score of 620+, debt-to-income ratio under 43%, at least 15-20% equity in your home, stable employment history, and adequate income to support payments. Property insurance is required, and you'll need to provide income documentation, tax returns, and undergo a home appraisal.

How long does the approval process take?

The typical process takes 21-45 days from application to funding. Pre-qualification can happen in minutes, initial approval within 24-48 hours, and final approval after appraisal and underwriting. Our streamlined process aims for 21-day average funding, which is faster than the industry average of 39 days.

Are there closing costs for home equity loans and HELOCs?

Yes, typical closing costs range from 2-5% of the loan amount and may include appraisal fees ($400-800), origination fees (0.5-2%), title search, recording fees, and attorney fees. Some lenders offer no-closing-cost options where costs are rolled into the loan rate. Always compare total costs, not just rates.

Last Updated: December 8, 2025

Current Home Equity Rates

Compare today's rates and see how market conditions affect your borrowing costs

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Today's Rates

Current rates for qualified borrowers with excellent credit (740+ FICO)

Home Equity Loan

7.25%

Fixed APR

Rate Range: 7.25% - 12.99%

15-Year Term7.25% APR

20-Year Term7.50% APR

30-Year Term7.75% APR

Get Home Equity Loan Quote

HELOC

6.75%

Variable APR

Rate Range: 6.75% - 18%

Prime Rate8.50%

Margin (Excellent Credit)+0.50%

Margin (Good Credit)+1.50%

Get HELOC Quote

*Rates shown are for qualified borrowers and may vary based on credit score, loan amount, and loan-to-value ratio. APR includes interest rate plus fees and costs.

What Affects Your Rate?

Credit Score

Higher credit scores qualify for lower rates. 740+ gets the best pricing.

740+ FICO:Best rates

680-739:+0.25-0.50%

620-679:+0.75-1.25%

Loan-to-Value (LTV)

Lower LTV ratios (more equity) result in better rates and terms.

≤60% LTV:Best rates

60-80% LTV:Standard rates

80-90% LTV:Higher rates

Debt-to-Income

Lower DTI ratios demonstrate ability to handle additional debt payments.

≤28% DTI:Best rates

28-36% DTI:Standard rates

36-43% DTI:Higher rates

Loan Term

Shorter terms typically offer lower rates but higher monthly payments.

10-15 years:Lowest rates

15-20 years:+0.25%

20-30 years:+0.50%

Property Type

Primary residences get better rates than investment or vacation properties.

Primary home:Best rates

Second home:+0.125-0.25%

Investment:+0.375-0.75%

Loan Amount

Larger loan amounts may qualify for slightly better rates due to economies of scale.

$100K+:Best pricing

$50-100K:Standard

$25-50K:Slight premium

Market Trends & Analysis

Recent Rate Movement

Home equity rates have experienced significant volatility in 2024, largely tracking Federal Reserve policy changes. After reaching multi-year highs in late 2023, rates have shown some moderation but remain elevated compared to the historic lows of 2020-2021.

Federal Reserve Impact

The Fed's monetary policy directly affects HELOC rates, which are typically tied to the Prime Rate. Home equity loan rates are influenced by longer-term bond yields and overall credit market conditions. Recent Fed communications suggest a measured approach to future rate changes.

Regional Variations

Rates can vary by state and region based on local market conditions, competition among lenders, and state regulations. Generally, rates are most competitive in states with high home values and active lending markets.

Rate Outlook

Near Term (Next 3-6 Months)

Rates expected to remain in current range with potential for modest decreases if inflation continues to moderate.

Medium Term (6-12 Months)

Economic data and Fed policy will drive direction. Recession concerns could push rates lower, while persistent inflation might keep them elevated.

Long Term (1-2 Years)

Structural economic changes and normalized monetary policy likely to settle rates in the 6-8% range for quality borrowers.

Key Factors to Watch:

• Federal Reserve policy decisions
• Inflation trends and economic data
• Housing market conditions
• Credit market stability
• Geopolitical events affecting markets

Calculate Your Potential Savings

Home Equity Calculator

Calculate your borrowing power and estimated payments

Your Information

Home Value

Current Mortgage Balance

Credit Score Range

Desired Loan Amount

Maximum available: $160,000

Loan Term (Years)

Your Results

$200,000

Available Home Equity

50.0% of home value

$160,000

Max Loan Amount

7.25%

Estimated Rate*

$913

Estimated Monthly Payment

15 year term at 7.25%

* Rate Disclaimer: Estimated rates shown are for illustrative purposes only. Actual Annual Percentage Rate (APR) may vary based on credit profile, loan-to-value ratio, loan amount, and other factors.

* Example: For a $$100,000 home equity loan with a 15-year term at 7.25% APR, estimated monthly payment is $913. APR and payment shown assume excellent credit (740+ score), combined loan-to-value of 80% or less, and owner-occupied primary residence.

* Payment shown is principal and interest only and excludes property taxes, insurance, and other fees. Actual payment will be higher.

* Rate and approval subject to credit and property approval. Rates are subject to change without notice.

Licensed in 15 states: AL, AR, CO, DE, FL, IN, MI, ND, OH, PA, RI, SC, SD, TN, WV. NMLS ID #1987891

Smart Rate Shopping Tips

Before You Shop

•Check your credit score and report
•Gather financial documents
•Determine your home's current value
•Calculate your available equity
•Decide on loan amount and term

When Comparing Offers

•Compare APRs, not just interest rates
•Factor in all closing costs and fees
•Understand rate lock periods
•Review repayment terms carefully
•Ask about rate discounts (auto-pay, etc.)

Pro Tip: Timing Your Application

Submit multiple applications within a 14-45 day window to minimize credit score impact. Credit bureaus typically count multiple mortgage-related inquiries within this timeframe as a single inquiry for scoring purposes.

Watch Out For

⚠Teaser rates that increase after an introductory period
⚠Hidden fees not included in APR calculations
⚠Prepayment penalties that limit your flexibility
⚠Variable rate caps that may not provide adequate protection

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Current Home Equity Rates

Today's Rates

Home Equity Loan

HELOC

What Affects Your Rate?

Credit Score

Loan-to-Value (LTV)

Debt-to-Income

Loan Term

Property Type

Loan Amount

Market Trends & Analysis

Recent Rate Movement

Federal Reserve Impact

Regional Variations

Rate Outlook

Near Term (Next 3-6 Months)

Medium Term (6-12 Months)

Long Term (1-2 Years)

Key Factors to Watch:

Calculate Your Potential Savings

Home Equity Calculator

Your Information

Your Results

Smart Rate Shopping Tips

Before You Shop

When Comparing Offers

Pro Tip: Timing Your Application

Watch Out For

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