Today’s HELOC & Home Equity Loan Rates: March 13, 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 that allows homeowners to borrow up to 85% of their home’s value and pay that amount back in monthly installments. A home equity line of credit is a variable-rate second mortgage that draws on your home’s value as a revolving line of credit.

Both options use your property as collateral for your payments, which means your lender can seize your property if you can’t repay what you borrow.

$100K HELOC Loan Rates

Ideal for Medium-Sized Projects

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A $100K HELOC is suitable for more extensive renovation projects or other significant financial needs. Compare the rates and terms to find the best fit for your situation.

$250K HELOC Loan Rates

Access More Funds for Major Investments

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For larger projects or investments, a $250K HELOC provides the necessary funds with various LTV options. Explore these rates to determine the right balance between borrowing capacity and risk.

$500K HELOC Loan Rates

Maximize Your Borrowing Power

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If you have substantial equity in your home and need significant financing, a $500K HELOC offers a great deal of borrowing power. Evaluate these options to find the optimal rate and term for your goals.

Pros and Cons of a HELOC

PROS CONS
Lower interest rates compared to other loan types
You can expect variable interest rates that change over time, which may make it difficult to manage your payments
You have consistent access to credit that they can use for emergency expenses or other quick costs
Your home serves as collateral, putting your home at risk of foreclosure if you default
The IRS allows HELOC borrowers to deduct interest payments from their taxes based on specific guidelines such as using your funds to buy, build or improve a home
HELOCs can come with significant fees that range from at least 2% to 6% of your total loan costs fees
You may be required to pay several fees, including appraisal, application and closing fees
If your home’s value drops while you have an open HELOC, you may owe more than your home is worth

5-Year Home Equity Loan Rates (60 Months)

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A 5-year term offers a shorter repayment period with typically higher monthly payments. These products are suitable for borrowers looking for a quicker payoff.

10-Year Home Equity Loan Rates (120 Months)

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With a 10-year term, borrowers can enjoy a balanced monthly payment while still building equity quickly. 10-year home equity loans are ideal for medium-sized projects or financial needs.

15-Year Home Equity Loan Rates (180 Months)

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A 15-year term provides lower monthly payments compared to shorter terms, offering more affordability while still progressing toward your financial goals.

20-Year Home Equity Loan Rates (240 Months)

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Offering longer repayment and lower monthly payments, 20-year home equity loans are suitable for larger investments and long-term financial planning.

30-Year Home Equity Loan Rates (360 Months)

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The 30-year term maximizes affordability with the lowest monthly payments. These options are best for substantial borrowing needs and long-term investments.

Pros and Cons of a Home Equity Loan

PROS CONS
Home equity loans offer fixed interest rates and monthly payments that stay the same over your loan term
Home equity lenders use your property as collateral for your loan, which means they can take it if you default
Your entire loan amount is distributed in one, lump-sum payment
Home equity loans have strict requirements that can make them difficult to qualify for
You can use home equity loan funds for almost any reason you see fit
You may have to pay expensive closing costs, including origination and appraisal fees
If your home equity loan meets IRS guidelines such as buying, building or improving a home, you can deduct your interest payments from your taxes
If your home’s value decreases during your loan term, you may end up owing more than your loan is worth

What Is Home Equity?

Your home equity is the appraised value of your home minus your remaining mortgage balance, usually expressed as a percentage. You’ll continue to build your home equity as long as you make on-time monthly payments and your home doesn’t vastly depreciate over time. Once you’ve paid your loan in full, you own all the equity in your home.

What Is a HELOC?

Home equity lines of credit, or HELOCs, are loans that allow you to borrow against your home’s equity – the current market value of your home minus your remaining mortgage balance. When you get a HELOC, you can take the money available in installments as you need it, and pay interest only on what you use.

How Do I Calculate Home Equity?

You’ll calculate your home equity by taking your home’s current value – based on its most recent appraisal – and subtracting it from your current mortgage balance.

For example, say your home is valued at $500,000 and your mortgage’s outstanding balance is $250,000. This would mean you have $250,000 in home equity, and your loan-to-value ratio (LTV) would be 50%. If you’re looking for a home equity loan or line of credit, lenders usually only approve up to a certain LTV ratio. For example, some lenders require 80% LTV or less.

Find the Best HELOC Rates of 2025

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