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Current HELOC & Home Equity Loan Rates: June 2, 2025
- 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 allowing homeowners to borrow up to 85% of their home’s value and pay it back in monthly installments. A HELOC is a variable-rate second mortgage that utilizes the home’s value as a revolving line of credit.
- Both options use the property as collateral, enabling the lender to seize the property if the borrower cannot repay the borrowed amount. HELOCs can be utilized for various projects and financial needs, with options ranging from $100K for medium-sized projects to $500K for substantial financing requirements.
- Various term lengths, such as 5, 10, 15, 20, and 30 years, offer different repayment options to borrowers based on their financial goals. Shorter terms provide quicker payoffs with higher monthly payments, while longer terms offer lower monthly payments suitable for larger investments and long-term planning.
- Home equity is the portion of the home that the owner possesses, calculated by deducting the mortgage balance from the home's appraised value. HELOCs allow homeowners to access this equity through a revolving line of credit, enabling them to borrow as needed and pay interest solely on the amount utilized.
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