To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. The rates shown above are calculated using a loan or line amount of $30,000, with a FICO score of 700 and a combined loan-to-value ratio of 80 percent.
Note: The above APRs are current as of April 17, 2024. The exact APR you might qualify for depends on your credit score and other factors, such as whether you're an existing customer or enroll in auto-payments.
National HELOC interest rate trends
HELOC rates hold steady at 9 percent
The average rate on a home equity line of credit (HELOC) remains at 9 percent as of April 17, according to Bankrate’s survey of large lenders, averaging 9.07 percent.
HELOCs come with variable interest rates, which change based on the prime rate, in turn tied to Federal Reserve policy. At its March 20 meeting, the Fed decided to maintain its current target rate. The central bank meets again at the end of April.
HELOC rates can also change because one or more home equity lenders markets an especially generous rate. That’s one reason why it often pays to search around for HELOC offers, at least for a lower introductory rate.
Mortgage holders ended 2023 with $16 trillion in collective equity, the highest year-end total ever, according to ICE. For the average homeowner, that’s an increase of about $25,000 in equity.
Even as rates are high, HELOCs are still more attractively priced compared to unsecured personal loans, which averaged a rate of 12.21 percent this week. If you’re looking to finance a renovation and have equity to tap, a line of credit could be less expensive than a home improvement loan. It’d also save you from a cash-out refinance, which could mean giving up a low rate on your mortgage in exchange for a new one.
A line of credit isn’t the only way to leverage your home’s equity. Another option: home equity loans, or second mortgages, which come with fixed interest rates. As of April 17, the 10-year, $30,000 home equity loan rate rose to 8.77 percent, according to Bankrate’s survey. The 15-year home equity loan rate also climbed to 8.76 percent.