As of June 2020, the average interest rate or a home equity line of credit, or HELOC, is 5.34%. Your particular interest rate will depend on many factors, including your credit history and the amount of equity in your home. Your home's equity is its value minus any amount still owed.
Current Interest Rates for Home Equity Line of Credit FAQs
A Home Equity Line of Credit (HELOC) is a loan secured by home equity that allows borrowers to access their available funds as needed up to an approved credit limit.
Interest rates for HELOCs vary depending on the market and lender. However, they are currently between 3.5% - 4% in most cases.
Interest rates for HELOCs are primarily based on your credit score and the loan-to-value ratio of your home equity.
The main benefit to taking out a HELOC is that you have access to credit that can be used for various purposes, such as home improvement and debt consolidation. Additionally, many lenders also offer fixed rates and flexible repayment terms.
It is important to compare interest rates for HELOCs from various lenders, as this will help you determine which lender provides the best deal. Additionally, it is also important to take into account other factors such as annual fees and repayment terms when comparing offers.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.
