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.

New week, new lows for home equity loans and lines of credit. The average rate on a $30,000 home equity line of credit (HELOC) dropped two basis points to 8.04 percent, its lowest level since 2023, according to Bankrate’s national survey of lenders. Meanwhile, the average $30,000 home equity loan sank to 8.37 percent, its lowest so far this year.

HELOC rates are low compared to other borrowing options, after all, but they are typically variable, meaning that the rate on your HELOC can change over time. However, some lenders allow you to take all or a portion of your HELOC and lock in rates with a fixed-rate option.