Current HELOC & Home Equity Loan Rates: July 9, 2024 — Rates Are Mixed

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Current HELOC & Home Equity Loan Rates: July 9, 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 9, 2024, 6:00am

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 8, 2024

Pros and Cons of a HELOC

PROS CONS

Competitive interest rates that are lower than some other loan types

You can expect variable interest rates that change over time, which may make it difficult to manage your payments

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

Lenders use your property as collateral, which means you can lose your home if you default on your loan

Interest payments may be tax deductible if you meet IRS guidelines and prove that you will use the funds to buy, improve or build a home

HELOCs can come with significant fees that range from at least 2% to 6% of your total loan costs fees

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

If the property value drops, you can owe more on your HELOC than your home is worth

See MoreSee Less

5-Year Home Equity Loan Rates (60 Months)

LOAN TERM APR

60.00% LTV, $50K

8.12%

80.00% LTV, $50K

8.38%

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 8, 2024

Pros and Cons of a Home Equity Loan

PROS CONS

You'll pay a fixed interest rate that remains consistent during your loan term

Your home will be used as collateral for your loan, which places your property at risk of foreclosure if you can't make your payments

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

Home equity loans have strict requirements that can make them difficult to qualify for

Home equity loans are unrestricted, meaning you can use them for almost any expense, including home renovations or auto repairs

Home equity loans come with several costs and fees that can add up and offset the benefits of a lower interest rate

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?

Home equity represents how much you own of your home compared to what the bank or mortgage lender owns. If you've paid off your home in full, you have 100% equity.

You can utilize your home's equity without paying off your home in full, whether through a home equity loan or a home equity line of credit (HELOC). You can use your home's equity for home improvements, repairs, debt consolidation and educational costs, among other things.

Why Is Home Equity Important?

Two major ways you build home equity is when the value of your home goes up (appreciation) and the balance of your mortgage goes down. As you make ongoing, regular monthly payments to your mortgage, your home equity will increase and so will your wealth.

Borrowing against your home equity lets you use money for major financial needs, including:

Home improvements, upgrades or repairs Consolidating debt Making large payments on high-interest debt Educational costs

What Is A HELOC?

Home equity lines of credit, or HELOCs, are loans that allow you to borrow against your home's equity -- the current market value of your home minus your remaining mortgage balance. When you get a HELOC, you can take the money available in installments as you need it, and pay interest only on what you use.

Find the Best HELOC Rates of 2024

Learn More

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