With a home equity loan, you borrow from a lender using your home as collateral. Home equity loans usually have low, fixed interest rates, and you repay in regular monthly payments.
Rate table for an avg. on rates and range of lenders
Avg. starting APR
As of Feb 07
3.8% - 11.99%
As of Jun 9
3.8% - 11.99%
As of Mar 30
3.8% - 11.99%
As of Feb 23
3.55% - 11.99%
This data reflects the lenders visible on the Credello site at any given time. Rates may vary based on number of lenders, term credit score, etc.Get matched with your best option
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Frequently asked questions
How much home equity loan can you get?
Most banks let you borrow up to 80% of your home equity, or the amount of your home that you’ve already paid off.
How do you choose the best bank for home equity loan?
Obviously, make sure your lender is licensed and well-reviewed. Otherwise, you can choose a home equity loan lender based on the lowest rates and best terms. It depends on how much you’re looking to borrow, how long you want to be repaying your loan, how much you want to pay per month. It’s also important to watch out for balloon payments at the end of your term.
How do you get a good home equity loan rate?
The best home equity loan rates usually go to borrowers with good credit and low debt-to-income (DTI) ratios.
Are home equity loan rates fixed or variable?
Home equity loan interest rates are fixed and predictable from month to month.
How do home equity loan rates compare with HELOC rates?
Home equity loan rates are fixed, while HELOC rates are typically variable, depending on the market. Predictability is definitely a factor to consider when deciding between a home equity loan and line of credit.
How do home equity loan rates compare with personal loan rates?
When compared to personal loan rates, home equity loan rates are usually lower because you’re putting up your home as collateral. Secured loans almost always come with lower interest rates than unsecured loans.
What are the fees and costs associated with a home equity loan?
When you get a home equity loan, you’ll be responsible for
Title search and insurance fees
Credit report fees
Closing costs—like attorney and mortgage preparation fees
Can you get a home equity loan with bad credit?
If you have poor credit—say, a score lower than 620—you might have trouble qualifying for a home equity loan. You should consider non-prime home equity lenders or alternatives like getting a personal loan or cash out refinance. Learn more about getting a home equity loan with bad credit.
What’s the difference between a home equity loan and home equity line of credit?
A home equity line of credit (HELOC) is similar to a home equity loan in that it uses your home as collateral. The difference between a home equity loan and HELOC, though, is that a home equity loan gives you a lump sum, while a HELOC gives you a revolving line of credit.
Disclaimer: Credello is not a licensed credit repair organization, credit counselor, debt management company, debt settlement company, or any other organization in the business of offering advice as to how to improve or repair your credit. Any information provided on this website that pertains to your credit is not to be construed as credit improvement or credit repair advice from Credello.