Current HELOC & Home Equity Loan Rates: July 10, 2024 — Rates Are Mixed

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by Forbes
2024-07-10

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Current HELOC & Home Equity Loan Rates: July 10, 2024 — Rates Are Mixed

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Current HELOC & Home Equity Loan Rates: July 10, 2024 -- Rates Are Mixed

Andrea RiquierForbes Advisor Staff

Andrea Riquier is a New York-based writer covering mortgages and the housing market for Forbes Advisor. She was previously at Dow Jones MarketWatch, on the housing market and financial markets beats. Before that, she covered macro and central banks for Investor's Business Daily, and municipal bonds for Debtwire.

Dori ZinnLoans Writer

With nearly two decades in journalism, Dori Zinn has covered loans and other personal finance topics for the better part of her career. She loves helping people learn about money, whether that's preparing for retirement, saving for college, crafting a budget or starting to invest. Her work has been featured in the New York Times, Wall Street Journal, CNN, Yahoo, TIME, AP, CNET, New York Post and more.

Andrea Riquier,

Andrea RiquierForbes Advisor Staff

Andrea Riquier is a New York-based writer covering mortgages and the housing market for Forbes Advisor. She was previously at Dow Jones MarketWatch, on the housing market and financial markets beats. Before that, she covered macro and central banks for Investor's Business Daily, and municipal bonds for Debtwire.

Dori Zinn

Dori ZinnLoans Writer

With nearly two decades in journalism, Dori Zinn has covered loans and other personal finance topics for the better part of her career. She loves helping people learn about money, whether that's preparing for retirement, saving for college, crafting a budget or starting to invest. Her work has been featured in the New York Times, Wall Street Journal, CNN, Yahoo, TIME, AP, CNET, New York Post and more.

Forbes Advisor Staff, Loans Writer

Caroline BasileMortgages and Student Loans Deputy Editor

Caroline Basile is Forbes Advisor's student loans and mortgages deputy editor. With experience in both the mortgage industry and as a journalist, she was previously an editor with HousingWire, where she produced daily news and feature stories. She holds a degree in journalism from the University of North Texas. When she's not working on finance-related content, Caroline enjoys baseball, traveling and going to concerts.

Reviewed

Caroline Basile

Caroline BasileMortgages and Student Loans Deputy Editor

Caroline Basile is Forbes Advisor's student loans and mortgages deputy editor. With experience in both the mortgage industry and as a journalist, she was previously an editor with HousingWire, where she produced daily news and feature stories. She holds a degree in journalism from the University of North Texas. When she's not working on finance-related content, Caroline enjoys baseball, traveling and going to concerts.

Mortgages and Student Loans Deputy Editor

Reviewed

Published: Jul 10, 2024, 6:07am

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

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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

LOAN TERM APR

60.00% LTV

9.12%

80.00% LTV

9.30%

90.00% LTV

10.18%

See MoreSee Less

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

LOAN TERM APR

60.00% LTV

9.12%

80.00% LTV

9.30%

90.00% LTV

10.22%

See MoreSee Less

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

LOAN TERM APR

60.00% LTV

9.17%

80.00% LTV

9.37%

90.00% LTV

10.36%

See MoreSee Less

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 9, 2024

Pros and Cons of a HELOC

PROS CONS

Lower interest rates compared to other loan types

Variable interest rates fluctuate based on the federal benchmark rate, potentially increasing monthly payments

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

Lenders use your property for collateral when you take out a HELOC, which jeopardizes your house if you default

If your HELOC meets IRS guidelines, your interest may be tax-deductible, but you must use the funds to purchase, build or improve a home

You may be on the hook for several fees and expenses, including appraisal fees, application fees and closing costs fees

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

If your home's value drops while you have an open HELOC, you may owe more than your home is worth

See MoreSee Less

5-Year Home Equity Loan Rates (60 Months)

LOAN TERM APR

60.00% LTV, $50K

8.13%

80.00% LTV, $50K

8.39%

90.00% LTV, $50K

9.10%

See MoreSee Less

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)

LOAN TERM APR

60.00% LTV, $150K

8.31%

80.00% LTV, $150K

8.58%

90.00% LTV, $150K

9.25%

See MoreSee Less

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)

LOAN TERM APR

60.00% LTV, $200K

8.49%

80.00% LTV, $200K

8.77%

90.00% LTV, $200K

9.42%

See MoreSee Less

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)

LOAN TERM APR

60.00% LTV, $250K

8.72%

80.00% LTV, $250K

9.08%

90.00% LTV, $250K

9.63%

See MoreSee Less

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)

LOAN TERM APR

60.00% LTV, $500K

9.30%

80.00% LTV, $500K

9.93%

90.00% LTV, $500K

10.05%

See MoreSee Less

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 9, 2024

Pros and Cons of a Home Equity Loan

PROS CONS

Home equity loan interest rates are fixed, meaning your monthly payments will stay the same over the life of your loan

You must use your home as collateral to take out a home equity loan, which means you could lose it with too many missing or late payments

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

Strict qualification requirements such as high credit score minimums and low debt-to-income ratios can make it difficult to secure a home equity loan

You can use home equity loan funds for almost any reason you see fit

Fees and charges can raise your overall payment amount and prolong your repayment efforts

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

See MoreSee Less

What Is Home Equity?

Your home equity is the appraised value of your home minus your remaining mortgage balance, usually expressed as a percentage. You'll continue to build your home equity as long as you make on-time monthly payments and your home doesn't vastly depreciate over time. Once you've paid your loan in full, you own all the equity in your home.

HELOC rates are tied more closely to banks than are first-mortgage rates, which tend to track the performance of the bond market. The Federal Reserve, which controls the interest rates that banks charge each other, has signaled to investors that it expects to raise those rates several times in 2022 and beyond.

How Does a Home Equity Loan Work?

Your equity in your home comes from how much you've paid on your mortgage. The longer you've been paying off your mortgage, the more equity you have. You can tap into that equity through a home equity loan.

A home equity loan is paid out in a lump sum that you can use for home improvements, home repairs, debt consolidation or another major expense. The amount you're approved for is based on how much equity you have in your home, your credit score and history, and how much you need.

Different home equity lenders offer different repayment terms, but longer repayment terms usually mean lower monthly payments. This might be helpful for you if you're paying both your original mortgage and a home equity loan at the same time.

Find the Best HELOC Rates of 2024

Learn More

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