The average interest rate for a home equity line of credit, or HELOC, is 5.35% as of 2020. Your exact rate will depend on factors such as your credit score and the amount of equity in your home. Generally, you can get the best rate by maintaining a good credit score, knowing the value of your home, and being willing to shop around.
Home Line of Credit Rates FAQs
A Home Line of Credit Rate is the interest rate that applies to a line of credit secured by the equity in your home. It can be used to finance large or small projects, and are typically lower than other types of loan rates.
Your credit score, loan size, and term length, as well as the current market conditions, can affect your home line of credit rate. Generally speaking, borrowers with higher credit scores will have access to lower rates on their loan products.
Your financial institution may perform a credit check and review your income, assets, and other financial obligations to determine whether you qualify for a Home Line of Credit.
Most lenders may charge an application fee or other fees associated with the loan product. It is important to ask your lender what fees they may charge to get a full understanding of the cost associated with the loan.
The time frame for obtaining a home line of credit can vary depending on the complexity of the borrower's situation and the availability of documents required by your financial institution. Generally speaking, it can take anywhere from 1-3 weeks to receive approval.
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.
