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In the elevated interest rate climate of recent years, there have been few affordable borrowing options to choose from. Personal loan interest rates, for example, have been frozen at around 12% for months while credit card interest rates have declined recently, but only from a recent record high of 23%. Double-digit rates for both make borrowing with either especially cost-prohibitive right now, even with the potential for interest rate cuts to be issued later in 2025.
One smart and effective way to borrow, however, is readily available for homeowners right now via their home equity. With the average equity level comfortably sitting over $300,000 currently, borrowing with a home equity loan or home equity line of credit (HELOC) makes sense. And with rates here significantly lower than most alternatives, and with those rates poised to drop alongside a declining federal funds rate in the months ahead, either could be the ideal way to borrow a large sum of money at an affordable cost.
Before getting started, homeowners should first familiarize themselves with today’s average HELOC and home equity loan rates, both of which change often based on market conditions.
Start the process by seeing how much home equity you could borrow here now.
What are today’s HELOC and home equity loan interest rates?
As of August 7, 2025, here’s what the average home equity loan interest rates are, according to Bankrate:
- 5-year home equity loans: 8.25%
- 10-year home equity loans: 8.41%
- 15-year home equity loans: 8.28%
The average HELOC rate is now 8.13%, according to Bankrate. However, all of these rates are nationwide averages, and the offers you may receive will be impacted by location, lender, credit profile, and more. Take the time, then, to shop around to find the lowest rates and best terms.
Start shopping for HELOCs and home equity loans online today.
What to know about borrowing with a HELOC and home equity loan
HELOCs and home equity loans both use your equity as the funding source, but the way they operate differs. Home equity loans come with fixed interest rates and provide the homeowner with a lump sum of money of which repayments will be expected to be made immediately.
HELOCs, on the other hand, come with variable interest rates and provide the homeowner with a revolving line of credit using the home as the funding source. Payments will only need to be made on the amount of credit used, not the full line of…
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