To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. The rates shown above are calculated using a loan or line amount of $30,000, with a FICO score of 700 and a combined loan-to-value ratio of 80 percent.
Note: The above APRs are current as of August 28, 2024. The exact APR you might qualify for depends on your credit score and other factors, such as whether you're an existing customer or enroll in auto-payments.
National HELOC interest rate trends
HELOC rates decline for second week in a row
The average rate on a home equity line of credit (HELOC) dropped to 9.28 percent as of Aug. 28, according to Bankrate’s survey of large lenders.
Home equity credit lines have variable interest rates, which change based on the prime rate, which is tied to Federal Reserve policy. At its latest meeting, the Fed left interest rates unchanged but signaled that inflation is improving, opening the door for a rate cut in September.
HELOC rates can also change because one or more home equity lenders markets an especially generous rate. That’s one reason why it often pays to search around for HELOC offers, at least for a lower introductory rate.
Even as rates remain high, HELOCs are still more attractively priced compared to unsecured personal loans, which currently average 12.38 percent. If you’re looking to finance a renovation and have equity to tap, a line of credit could be less expensive than a home improvement loan. It’d also save you from a cash-out refinance, which could mean giving up a low rate on your mortgage in exchange for a new one.
A line of credit isn’t the only way to leverage your home’s equity. Another option: home equity loans, or second mortgages, which come with fixed interest rates. As of Aug. 28, the average rates for a 10-year, $30,000 loan and a 15-year, $30,000 loan fell to fresh lows for the year, 8.62 percent and 8.57 percent, respectively, according to Bankrate’s survey.