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.

$100K HELOC Loan Rates

Ideal for Medium-Sized Projects

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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

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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

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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.

Pros and Cons of a HELOC

PROS	CONS
Interest rates are generally lower than some other loan types such as personal loans	HELOCs come with variable interest rates that fluctuate depending on several factors, which can make your monthly payments adjust with your interest rate at any given time
If unexpected expenses pop up, HELOCs offer a credit line that you can tap into at any time	Defaulting on a HELOC can place your house at risk of foreclosure since your property serves as collateral, or insurance, for the lender
You may receive a tax deduction from your interest payments if you meet specific IRS guidelines and use the funds to cover home-related expenses	You may be required to pay several fees, including appraisal, application and closing fees
If you use a HELOC to repay other debt, you can reduce your credit utilization and improve your credit score	If the property value drops, you can owe more on your HELOC than your home is worth

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5-Year Home Equity Loan Rates (60 Months)

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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)

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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)

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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)

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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)

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The 30-year term maximizes affordability with the lowest monthly payments. These options are best for substantial borrowing needs and long-term investments.

Pros and Cons of a Home Equity Loan

PROS	CONS
Your interest rate will remain static over the life of your loan, giving you a consistent monthly payment amount	Home equity lenders use your home as collateral for the loan, which could result in foreclosure should you default on your monthly payments
You’ll receive a lump sum that can be used for big purchases such as a home renovation	Lenders impose strict credit score and debt-to-income ratio requirements that make it difficult to qualify for a home equity loan
There are no limits on what you can use your home equity loan fund for	Home equity loans come with several costs and fees that can add up and offset the benefits of a lower interest rate
The IRS allows home equity borrowers to deduct interest payments from their taxes if they meet specific guidelines	You could end up with an “underwater” loan, which occurs when you end up owing more than your home is worth

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Why Is Home Equity Important?

The more home equity you have, the higher your net worth rises. Building wealth is vital to having long-term financial health, and home equity is one way to build wealth.

Every time you make a mortgage payment, you increase your home equity, or how much you own of your home. The more equity you have, the more wealth you amass.

How Does a Home Equity Loan Work?

A home equity loan is a lump-sum loan that allows you to borrow money by leveraging your home’s equity.

The maximum amount you’re allowed to borrow is based on how much equity you have in your home, up to the amount offered by that lender. These types of loans tend to have competitive interest rates since they’re secured loans. Your home is used as collateral to secure the loan, meaning if you miss or fall behind on payments, you could face foreclosure.

How Do I Calculate Home Equity?

You’ll calculate your home equity by taking your home’s current value – based on its most recent appraisal – and subtracting it from your current mortgage balance.

For example, say your home is valued at $500,000 and your mortgage’s outstanding balance is $250,000. This would mean you have $250,000 in home equity, and your loan-to-value ratio (LTV) would be 50%. If you’re looking for a home equity loan or line of credit, lenders usually only approve up to a certain LTV ratio. For example, some lenders require 80% LTV or less.