Average Interest Rates for Home Equity Loans & HELOCs
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Editorial note: Interest rates are current as of the publishing date.
The average interest rate for a 15-year fixed-rate home equity loan is currently 5.82%. The average rate for a variable-rate home equity line of credit is 5.61%.
The data below illustrates how home equity loan rates compare to interest rates on first mortgages across the United States. If you're interested in tapping your home equity, you’ll also learn how to get the best home equity rates.
- What are home equity loans and lines of credit?
- Average home equity interest rates
- Average 5-year home equity loan interest rates
- Average 10-year home equity loan interest rates
- Average 15-year home equity loan interest rates
- Average HELOC interest rates
- Average home equity rates over time
- Ways to get the best rates
What are home equity loans and lines of credit?
A home equity loan is a second mortgage that allows you to borrow against the equity you’ve built in your home. The loan is disbursed in a lump sum and you repay it, plus interest, over a set term.
A home equity line of credit (HELOC) is a revolving credit line that works similarly to a credit card. You pay only for what you use, plus interest. HELOCs have a set draw period during which the credit line is available for use. When it switches to the repayment period, you can no longer access the credit line.
Home equity loan interest rates are typically fixed while HELOC interest rates are often variable.
The rates on both home equity loans and HELOCs are based on your:
- Credit score
- Debt-to-income (DTI) ratio
- Loan-to-value (LTV) ratio
Having a lower LTV ratio or higher credit score may lead to more favorable terms, while a higher DTI ratio might warrant a higher rate or make it harder to get approved for a home equity loan altogether.
If you’re using a home equity loan or HELOC to pay for improvements to your home, the interest you pay is generally tax-deductible through the mortgage interest deduction. Interest paid on a home equity loan or HELOC for any other purpose, such as buying an investment property or consolidating debt, isn’t tax-deductible.
Average home equity interest rates
Home equity loans and HELOCs are second mortgages, which means in the event of a foreclosure, the home equity lender is second in line to get repaid after the lender on your first mortgage — or the loan used to purchase your home. Because of this, lenders typically charge higher interest rates on home equity loans and HELOCs than on first mortgages.
The average home equity rates and ranges in the table below assume a $25,000 home equity loan or HELOC on a property with an 80% LTV ratio.
Loan type | Average rate | Range |
|---|---|---|
| 15-year fixed | 5.82% | 2.99%-9.03% |
| 10-year fixed | 5.60% | 2.99%-9.99% |
| 5-year fixed | 5.28% | 2.50%-9.99% |
| HELOC | 5.61% | 3.50%-8.63% |
Rates assume a loan amount of $25,000 and a loan-to-value ratio of 80%. HELOC rates assume the interest rate during initiation of credit line, after which rates can change based on market conditions.
Average 5-year home equity loan interest rates
Five-year home equity loan rates may be lower than rates on loans with longer repayment terms. While this means you could pay less in interest, you’ll likely have higher monthly payments.
State | Average rate | Range |
|---|---|---|
| Alabama | 5.48% | 2.63%-9.99% |
| Alaska | 6.93% | 6.75%-7.03% |
| Arizona | 6.62% | 4.39%-9.03% |
| Arkansas | 6.04% | 3.25%-6.75% |
| California | 5.75% | 3.12%-9.03% |
| Colorado | 5.26% | 3.49%-6.53% |
| Connecticut | 5.27% | 3.12%-7.61% |
| Delaware | 4.96% | 3.85%-5.39% |
| Florida | 5.44% | 2.63%-6.64% |
| Georgia | 5.31% | 4.65%-5.75% |
| Hawaii | 3.00% | 3.00%-3.00% |
| Idaho | 5.50% | 5.50%-5.50% |
Rates assume a loan amount of $25,000 and a loan-to-value ratio of 80%.
Average five-year home equity rates range from 3.72% to 6.58% nationally. Paying off $25,000 over five years will require significantly higher monthly payments than paying off the same amount with a 15-year home equity loan. Remember to also factor in your mortgage payment and other monthly expenses when you consider borrowing a home equity loan.
Average 10-year home equity loan interest rates
The average 10-year home equity loan rates in each state are listed in the table below. Typically, 10-year home equity loans come with moderate interest rates that strike a balance between the length of your term and your monthly payment.
State | Average rate | Range |
|---|---|---|
| Alabama | 5.73% | 3.88%-9.99% |
| Alaska | 6.79% | 6.79%-6.79% |
| Arizona | 6.59% | 4.39%-9.03% |
| Arkansas | 5.81% | 3.25%-6.35% |
| California | 6.08% | 3.25%-9.03% |
| Colorado | 5.80% | 4.49%-6.75% |
| Connecticut | 5.71% | 3.75%-7.53% |
| Delaware | 5.41% | 4.50%-5.99% |
| Florida | 5.67% | 3.88%-6.75% |
| Georgia | 5.54% | 4.40%-6.25% |
| Hawaii | NA | NA |
| Idaho | 5.93% | 5.75%-6.00% |
Rates assume a loan amount of $25,000 and a loan-to-value ratio of 80%.
Nationally, average 10-year home equity loan rates range from 4.25% to 6.92%. Your interest rate may vary according to your credit profile, DTI ratio and LTV ratio.
Average 15-year home equity loan interest rates
Current home equity loan rates for the average 15-year home equity loan are highlighted in the table below for each state. Generally speaking, 15-year home equity loans offer the longest term available and come with the highest rates when compared with five-year and 10-year home equity loans.
State | Average rate | Range |
|---|---|---|
| Alabama | 5.79% | 5.40%-6.25% |
| Alaska | 6.79% | 6.79%-6.79% |
| Arizona | 6.61% | 4.39%-9.03% |
| Arkansas | 6.15% | 3.25%-7.10% |
| California | 6.32% | 3.25%-9.03% |
| Colorado | 6.12% | 5.45%-7.25% |
| Connecticut | 5.95% | 3.88%-7.60% |
| Delaware | 5.63% | 4.90%-6.24% |
| Florida | 5.93% | 4.75%-6.75% |
| Georgia | 5.71% | 4.74%-7.00% |
| Hawaii | NA | NA |
| Idaho | 6.57% | 6.33%-7.22% |
Rates assume a loan amount of $25,000 and a loan-to-value ratio of 80%.
The average home equity rate for each state reflects minor differences across the U.S., especially when compared with the national average of 5.82%. The quotes we gathered ranged from 4.49% to 6.99%.
Average HELOC interest rates
Home equity line of credit borrowers have the benefit of drawing on their funds as needed, rather than receiving a one-time lump sum. HELOC interest rates are more volatile than home equity loans due to their variable rate structure. However, many HELOCs feature lower rates, at least when you first open the credit line. The variable interest rate will adjust with the market over time.
State | Average rate | Range |
|---|---|---|
| Alabama | 5.42% | 4.74%-7.50% |
| Alaska | 5.25% | 5.25%-5.25% |
| Arizona | 5.45% | 4.50%-6.50% |
| Arkansas | 5.43% | 4.25%-8.38% |
| California | 6.37% | 3.99%-8.50% |
| Colorado | 5.18% | 4.00%-6.75% |
| Connecticut | 6.03% | 4.00%-8.25% |
| Delaware | 5.76% | 4.00%-6.55% |
| Florida | 6.59% | 4.25%-8.50% |
| Georgia | 5.38% | 4.25%-7.00% |
| Hawaii | 4.83% | 4.25%-6.00% |
| Idaho | 5.33% | 5.00%-6.29% |
Rates assume a loan amount of $25,000 and a loan-to-value ratio of 80%.
On a national level, HELOC rates range from 4.28% to 6.95%. The majority of HELOC rates are tied to the prime rate, which means the market will determine how much a borrower incurs in interest costs over time. While this means that your interest rate might fall, your interest costs could also skyrocket if you're in a rising interest rate environment.
If you like the flexibility that a HELOC offers but you're worried about rising rates, some lenders offer fixed-rate HELOCs that allow you to lock in a certain interest rate on your borrowing costs in exchange for a fee.
Average home equity rates over time
While average home equity rates are significantly lower than they were 10 years ago, they’re trending upward. Take a look at how rates on home equity financing have changed over the last decade.
[table align="left left widths="50% 50%" footnote="Rates assume a loan amount of $25,000 and a loan-to-value ratio of 80% for a 15-year home equity loan."] Year | Average Rate _ 2019 | 5.94% _ 2018 | 5.58% _ 2017 | 5.41% _ 2016 | 5.37% _ 2015 | 5.46% _ 2014 | 5.57% _ 2013 | 5.73% _ 2012 | 6.03% _ 2011 | 6.40% _ 2010 | 6.75% [/table]What are home equity loans and lines of credit?
Keep the following tips in mind to help you qualify for the best home equity rates.
- Increase your equity. In most cases, you’ll need to have a sizable amount of equity in your home before you can borrow against it. Double up your mortgage payments and dedicate bonuses, tax refunds and any other windfalls to paying down your mortgage balance and boosting your equity.
- Improve your credit score. You’ll need at least a 740 credit score to increase your chances of getting the lowest interest rate available on a home equity loan or HELOC. Review your credit reports for errors and dispute them. Maintain a history of on-time payments and don’t take on additional debt.
- Pay down your debt. Your debt-to-income ratio is a major factor in your home equity rate. Pay off some or all of your debt, especially credit cards, to keep your DTI ratio low. For anything you can’t pay off right away, pay down those balances as much as possible before applying for a home equity loan or line of credit.
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