Current home equity loan rates are a little bit lower than credit card rates.
Current home equity loan rates
We track home equity loan rates from 11 different lenders to help you understand the range of rates that are available to borrowers right now.
| Home equity loan term | Average rate | Highest rate | Lowest rate |
| 10-year | 7.13% | 7.94% | 6.45% |
| 15-year | 7.59% | 8.49% | 6.45% |
How are home equity loan rates determined?
Factors influencing home equity loan rates
As with loan-to-value ratio (LTV) is the ratio of how much you owe on your mortgage versus what your house is worth. A combined loan-to-value ratio (CLTV) includes all of the loans you have on your property, including first and second mortgages.
You'll receive the funds for your home equity loan in a lump sum, and then you'll pay it back in equal installments over the life of the loan.
The best home equity loans
The best lenders for home equity loans have no or low fees, multiple term length options, high maximum CLTVs, and other beneficial features like customer discounts. Here are the best home equity loan lenders as chosen by Business Insider editors in 2025.
- U.S. Bank Home Equity Loan: Best overall
- Navy Federal Credit Union Home Equity Loan: Best overall, runner-up
- Discover Home Equity Loan: Best for no fees
- Flagstar Home Equity Loan: Best for large loan amounts
- Connexus Home Equity Loan: Best for small loan amounts
Compare the top home equity loans
Best overall: U.S. Bank
7.15% or 7.20%
Fair
- 80% Max CLTV
- Not available in Delaware, South Carolina, or Texas
- Rates shown for loans in the amount of $50,000-$99,999 up to 60% LTV, and for customers with automatic payments from a U.S. Bank personal checking or savings account with a FICO score of 730 or higher. Rates may vary by region and are subject to change.
U.S. Bank is a strong lender overall for home equity loans, with no closing costs, a wide range of loan amounts, and a discount for existing customers. It ranks high in customer satisfaction and has many positive online customer reviews.
If you have a savings account, you could get a 0.5% rate discount if you set up automatic payments.
What to look out for: U.S. Bank home equity loans aren't available in Delaware, South Carolina, or Texas
Best overall, runner-up: Navy Federal Credit Union
starting at 6.640%
Fair
- 100% Max CLTV
- Available in 50 states and Washington, DC
- Must be a member of the military, a veteran, a family member of someone who has served, or a Department of Defense civilian
- Personal guidance from first call to closing
- No application or origination fee
- Navy Federal servicing for the life of your loan
Navy Federal Credit Union is a great home equity loan lender for those who qualify for a Navy Federal membership. It offers competitive VA loan borrowers, who might not have a ton of equity built up if they put 0% down on their home when they purchased it. It also has good online customer reviews.
What to look out for: Navy Federal is our "best overall" runner-up because, while it's a very strong lender overall, you have to be a member of Navy Federal Credit Union to get a loan with this lender. To qualify, you need to be a member of the military, a veteran, a family member of someone who has served, or a Department of Defense civilian.
Best for no fees: Discover
7.24% - 13.99%
Fair
- No closing costs
- Not available in Iowa or Maryland
- Low, Fixed APRs
- Fixed Repayment Terms
- $0 Origination Fees
Discover is an affordable home equity loan lender that doesn't charge any closing costs, and it will also pay any third-party costs you incur.
Discover offers home equity loans with 10-, 15-, 20-, and 30-year terms and loan amounts from $35,000 to $500,000.
What to look out for: Not available in Iowa or Maryland. You'll need at least a 680 credit score to qualify.
Best for large loan amounts: Flagstar Bank
Undisclosed
Good
- 90% Max CLTV
- Not available in Texas
- Tailored to meet your needs. If you require extra funds to help pay for big projects or unforeseen circumstances, Flagstar offers a variety of home equity options to help you reach your goals.
Flagstar Bank is a good option for borrowers who need larger loan amounts, since you can get a home equity loan for up to $1 million. It ranks high in customer satisfaction and has many positive online customer reviews.
If you qualify, you can get a home equity loan from Flagstar for any amount between $10,000 and $1 million. It also charges no lender fees, though you still may need to pay some third-party fees at closing.
If you have a bank account with Flagstar, you could get a 0.25% rate discount if you set up automatic loan payments from your account.
What to look out for: Flagstar home equity loans aren't available in Texas.
Best for small loan amounts: Connexus Credit Union
7.74% to 7.96%
Undisclosed
- Higher max CLTV
- Allows smaller loan amounts
- Not available in Maryland, Texas, Hawaii, or Alaska
- Doesn't disclose lender closing fees
- Use the funds from your Home Equity Loan for home renovations or repairs, college tuition, consolidating debt, vacations, and more – you decide!
- Your interest rate and monthly payment amount will not change over the course of your Home Equity Loan, making budgeting a breeze.
- Within 24 hours of applying, a personal lender will reach out to get the process started and will be available to chat whenever you have questions. To speak with a personal lender with Home Equity Loan expertise today, book an appointment.
- Most Home Equity Loans can be processed entirely online in just minutes and do not require a home appraisal.
Connexus Credit Union offers smaller loan amounts, shorter terms, and a higher max CLTV, making it an affordable choice for borrowers looking to fund smaller projects or keep their interest costs down.
With Connexus Credit Union, borrowers can get a home equity loan with a term of just five years with loan amounts as low as $5,000. If you want to limit your overall interest costs, a shorter term is often a good choice because you'll spend less time paying back the loan.
What to look out for: Connexus doesn't disclose whether it charges its own closing fees, but says borrower closing costs can range from $175 to $2,000. Connexus home equity loans aren't available in Maryland, Texas, Hawaii, or Alaska.
Key factors to consider when choosing a home equity loan
Interest rates
Your interest rate will determine how much you'll pay to borrow from your home's equity. The lower your rate, the lower your monthly payment will be.
Reach out to at least two or three different lenders you're interested in to get quotes so you can compare costs. Be sure to consider both the rates you're offered as well as any fees the lender charges.
Loan fees
Home equity loans come with some improve your credit score is to pay down credit card debt, since that will lower the amount of available credit you're using. You can also contact your credit card issuer and see if you're eligible for a credit line increase, as this would also lower your utilization rate.
Shopping around for the best rates
If you're looking to get a home equity loan, you can potentially save a lot of money by shopping around with three or four different lenders to compare rates. But be sure to consider the overall picture as well. A lender that has low rates but high closing costs might ultimately not be the best fit.
Consider the loan term
The shorter the loan term, the lower your rate will be. However, many borrowers like longer terms because it gives them more time to pay back the loan, resulting in lower monthly payments.
Pros and cons of home equity loans
Advantages of home equity loans
One benefit of home equity loans is that they're predictable. You can borrow money at a fixed interest rate with a monthly payment that will stay the same throughout the life of the loan.
Because they're tied to your home, home equity loans have lower rates than unsecured types of debt, like a personal loan or credit card. You may also be able to borrow more, depending on how much equity you have.
Plus, if you plan to use the home equity loan to finance a home improvement project or repair, you can deduct the loan's interest on your taxes.
Potential drawbacks of home equity loans
Taking out additional debt on your home can be risky, since your home equity loan lender can Home appraisals determine how much your home is actually worth according to current market conditions and recent similar home sales in your area.
Then, the lender will look over your application and the appraisal and determine how much it's willing to lend you. Once you've got final approval, you'll close on the loan and receive your money.
Current home equity loan rates FAQs
What is a good home equity loan rate?
Average home equity loan rates fluctuate based on current market conditions, though the rate you'll get will also depend on your financial profile. Get rate quotes from multiple lenders to make sure you're getting a good home equity loan rate.
Can I deduct the interest paid on a home equity loan from my taxes?
If you use the proceeds from your home equity loan to "buy, build, or substantially improve" your primary residence or second home, you can deduct the interest you pay on your taxes, according to the IRS.
What are the risks of taking out a home equity loan?
The main risk of a home equity loan is that the debt is secured by your home. This means that if you were suddenly unable to make payments on the loan, you risk losing your home.
How long does it take to get a home equity loan?
The timeline for getting a home equity loan varies, and can take from a few weeks to a couple of months to complete.
Can I get a variable rate home equity loan?
Home equity loans are generally fixed-rate loans, but you may be able to find a lender that has variable rate options.
