Home equity loan rates can vary widely by lender and the type of product. As of November 8, 2023, the current average home equity loan interest rate is 8.94 percent, while the average HELOC interest rate is 10.04 percent. Home equity lines of credit (HELOCs) generally have lower starting interest rates than home equity loans, although the rates are variable. On the other hand, home equity loans have fixed interest rates, meaning the rate you receive will be the rate you pay for the entirety of the loan term.
Here are some key points to consider about home equity loan rates:
- The average home equity loan rate across all terms sat at 8.94% as of November 13, 2023.
- The best home equity loan rates in November 2023 ranged from 8.99% APR to 25.81% APR, reflecting various discounts.
- Most home equity loan rates are indexed to a base rate called the prime rate, which is tied to the federal funds rate set by the Federal Reserve.
- Your credit score and debt-to-income ratio are major factors influencing your mortgage interest rate, and some lenders may offer a discount on a home equity loans interest rate if you have another account with the bank.
When considering a home equity loan, its important to shop around and compare rates from different lenders to ensure youre getting the best deal. Additionally, boosting your credit score and having a solid repayment strategy in place can help you secure a favorable home equity loan rate.
