Best Home Equity Line of Credit (HELOC) Rates for May 2024 – CNET

You can use a HELOC to tap into your home’s equity and get flexible access to cash with a revolving credit line.
Katherine Watt
Writer
Katherine Watt is a CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelor’s degree in English literature.
Alix Langone
Reporter
Alix is a former CNET Money staff writer. She also previously reported on retirement and investing for Money.com and was a staff writer at Time magazine. Her work has also appeared in various publications, such as Fortune, InStyle and Travel + Leisure, and she also worked in social media and digital production at NBC Nightly News with Lester Holt and NY1. She graduated from the Craig Newmark Graduate School of Journalism at CUNY and Villanova University. When not checking Twitter, Alix likes to hike, play tennis and watch her neighbors’ dogs. Now based out of Los Angeles, Alix doesn’t miss the New York City subway one bit.
Laura Michelle Davis
Editor
Laura is a professional nitpicker and good-humored troubleshooter with over 10 years of experience in print and digital publishing. Before becoming an editor with CNET, she worked as an English teacher, Spanish medical interpreter, copy editor and proofreader. She is a fearless but flexible defender of both grammar and weightlifting, and firmly believes that technology should serve the people. Her first computer was a Macintosh Plus.
Melissa Cohn
Expert Reviewer
Melissa Cohn has been in the mortgage industry for over 35 years. She began her career with CitiMortgage before launching her own mortgage company, The Manhattan Mortgage Company, in 1985. As one of the very first independent mortgage brokers, Cohn exponentially grew her business into the #1 residential mortgage broker on the East Coast with more than $5 billion in annual volume. In 2020, she joined William Raveis Mortgage, where she is currently a top originator in the company. Her insights are regularly featured in the press — including The Wall Street Journal, Forbes and Bloomberg.
Katherine Watt
Writer
Katherine Watt is a CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelor’s degree in English literature.
Alix Langone
Reporter
Alix is a former CNET Money staff writer. She also previously reported on retirement and investing for Money.com and was a staff writer at Time magazine. Her work has also appeared in various publications, such as Fortune, InStyle and Travel + Leisure, and she also worked in social media and digital production at NBC Nightly News with Lester Holt and NY1. She graduated from the Craig Newmark Graduate School of Journalism at CUNY and Villanova University. When not checking Twitter, Alix likes to hike, play tennis and watch her neighbors’ dogs. Now based out of Los Angeles, Alix doesn’t miss the New York City subway one bit.
Laura Michelle Davis
Editor
Laura is a professional nitpicker and good-humored troubleshooter with over 10 years of experience in print and digital publishing. Before becoming an editor with CNET, she worked as an English teacher, Spanish medical interpreter, copy editor and proofreader. She is a fearless but flexible defender of both grammar and weightlifting, and firmly believes that technology should serve the people. Her first computer was a Macintosh Plus.
Melissa Cohn
Expert Reviewer
Melissa Cohn has been in the mortgage industry for over 35 years. She began her career with CitiMortgage before launching her own mortgage company, The Manhattan Mortgage Company, in 1985. As one of the very first independent mortgage brokers, Cohn exponentially grew her business into the #1 residential mortgage broker on the East Coast with more than $5 billion in annual volume. In 2020, she joined William Raveis Mortgage, where she is currently a top originator in the company. Her insights are regularly featured in the press — including The Wall Street Journal, Forbes and Bloomberg.
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Katherine Watt
Writer
Katherine Watt is a CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelor’s degree in English literature.
Alix Langone
Reporter
Alix is a former CNET Money staff writer. She also previously reported on retirement and investing for Money.com and was a staff writer at Time magazine. Her work has also appeared in various publications, such as Fortune, InStyle and Travel + Leisure, and she also worked in social media and digital production at NBC Nightly News with Lester Holt and NY1. She graduated from the Craig Newmark Graduate School of Journalism at CUNY and Villanova University. When not checking Twitter, Alix likes to hike, play tennis and watch her neighbors’ dogs. Now based out of Los Angeles, Alix doesn’t miss the New York City subway one bit.
Laura Michelle Davis
Editor
Laura is a professional nitpicker and good-humored troubleshooter with over 10 years of experience in print and digital publishing. Before becoming an editor with CNET, she worked as an English teacher, Spanish medical interpreter, copy editor and proofreader. She is a fearless but flexible defender of both grammar and weightlifting, and firmly believes that technology should serve the people. Her first computer was a Macintosh Plus.
Melissa Cohn
Expert Reviewer
Melissa Cohn has been in the mortgage industry for over 35 years. She began her career with CitiMortgage before launching her own mortgage company, The Manhattan Mortgage Company, in 1985. As one of the very first independent mortgage brokers, Cohn exponentially grew her business into the #1 residential mortgage broker on the East Coast with more than $5 billion in annual volume. In 2020, she joined William Raveis Mortgage, where she is currently a top originator in the company. Her insights are regularly featured in the press — including The Wall Street Journal, Forbes and Bloomberg.
CNET staff — not advertisers, partners or business interests — determine how we review the products and services we cover. If you buy through our links, we may get paid.
A home equity line of credit, or HELOC, is a revolving credit line that you can borrow from to reach personal or financial goals, such as consolidating high-interest debt or funding home improvement projects. You’ll first need at least a 15% to 20% ownership stake in your home to tap into that equity. Because your home serves as collateral for the loan, you could risk foreclosure if you’re not able to pay off your debt. 
HELOCs and home equity loans are both good options for homeowners in need of cash, with more affordable interest rates than personal loans or credit cards. Unlike fixed-rate home equity loans, HELOCs nearly always have a variable rate, so your interest rate will change alongside market fluctuations.
I’ve spoken with experts about how these lines of credit work and where to find the best rates. Here’s what you need to know to determine if a HELOC is the right fit for you.
Here are the average rates for home equity loans and home equity lines of credit as of May 29, 2024.
Since 2022, HELOC rates have risen substantially in response to a series of interest rate hikes by the Federal Reserve. Average HELOC rates are in the low 9% range, according to data from CNET’s sister site Bankrate. 
The Fed appears to be at the end of its rate-hike cycle, but homeowners will have to wait for lower HELOC rates. The central bank isn’t likely to start cutting interest rates until later this year, and HELOC rates should remain steady in the meantime.
“As rates start to decline this year, variable-rate products like HELOCs become more attractive as borrowers will be able to benefit from the rate of decreases without the need to refinance,” said Matthew Sanford, administrative vice president of mortgage lending at Skyla Federal Credit Union.
U.S. Bank offers both home equity loans and HELOCs in 47 states, with the option of interest-only HELOCs for qualified borrowers. You also have the option to lock all or part of your outstanding HELOC balance into a fixed-rate option during your draw period.
You can apply for a home equity loan or HELOC through an online application, by phone or by visiting a U.S. Bank branch in person.
TD Bank offers home equity loans and HELOCs in 15 states, with the option for interest-only and rate-lock HELOCs.
You can apply for a TD Bank home equity loan or HELOC online, by phone or by visiting a branch in person. The online application includes a calculator that will tell you the maximum amount you can borrow based on your personal information. You can also see a full breakdown of rates, fees and monthly payments by entering some basic information online. No credit check is required for this service.
Connexus Credit Union offers home equity loans and HELOCs in 46 states (excluding Alaska, Hawaii, Maryland and Texas). This credit union also offers an interest-only HELOC.
Since Connexus is a credit union, its products are available only to its members. But membership eligibility is open to most people: You (or a family member) just need to be a member of a one of Connexus’ partner groups, reside in one of the communities or counties on Connexus’ list or become a member of the Connexus Association with a $5 donation to its nonprofit.
To apply for a home equity loan or HELOC with Connexus, you can fill out a three-step application online. You won’t be able to see a personalized rate without a credit check.
Spring EQ operates in 38 states and offers home equity loans, HELOCs and interest-only HELOCs. While Spring EQ doesn’t display rates without an application, it does advertise a maximum LTV ratio of 90% for home equity loans. It doesn’t clarify whether the same maximum LTV ratio is applicable to HELOCs.
The loan application process is transparent and easy to understand. Customers can see an extensive breakdown of their loan options without needing to undergo a credit check or provide their Social Security number.
KeyBank offers home equity loans to customers in 15 states and HELOCs to customers in 44 states. Aside from a standard HELOC, KeyBank also offers interest-only and rate-lock options.
The KeyBank application allows you to apply for multiple products at one time. If you’re not sure whether KeyBank loans are available in your area, the application will tell you once you input your ZIP code. If you’re an existing KeyBank customer, you’ll have the option to skim through the application and import your personal information from your account.
Third Federal Savings & Loan offers HELOCs in 26 states and home equity loans in eight states. If you find a different lender that offers a lower interest rate, Third Federal says it will match the rate or pay you $1,000 if it can’t.
You can apply for a home equity loan or HELOC on the Third Federal website. Both applications are included on the same page along with multiple rate and term options, allowing you to assess what will be best for you.
PNC Bank operates in 44 states. While PNC doesn’t offer home equity loans, it does offer both variable-rate and fixed-rate HELOCs. PNC HELOCs are also good for their long repayment periods: 30 years. A long repayment period generally means lower monthly payments (but more interest paid in the long run). PNC also gives you the option to lock in a specific rate on all or a portion of your HELOC balance, but you must pay a $100 fee every time you do so.
PNC doesn’t show its rates online. You must fill out an application to see personalized rates, but the site is user-friendly. Customers can estimate their home equity with an easy-to-use calculator.
Headquartered in San Antonio, Frost Bank’s products are available only to Texas residents. It offers home equity loans, HELOCs and interest-only HELOCs.
You can apply for a home equity loan or HELOC on the Frost Bank website, but first you’ll need to create an account. According to the bank, the application will take you only about 15 minutes. If you’re not located in Texas, you won’t be able to apply.
Regions Bank serves customers across the South, Midwest and Texas. Regions offers home equity loans and HELOCs in 15 states. HELOC offerings include a rate-lock option for customers who want it.
You can apply for a Regions home equity loan or HELOC online, in person or over the phone. You have to create an account with Regions to apply, though you can use the bank’s rate calculator to estimate your rate and payment amount beforehand.
Citizens offers standard and interest-only HELOCs to borrowers in 19 states. The bank doesn’t offer home equity loans. Citizens’ minimum loan amount is $5,000, which may be a draw for customers who aren’t looking to borrow a large amount of money.
You can apply for a HELOC on the Citizens website, but you also have the option to speak to a loan specialist on the phone. You need to sign up with a phone number and email to access the application.
BMO Harris (a subsidiary of the Canadian financial services company Bank of Montreal) has products and services available in 48 states (all but New York and Texas). BMO Harris offers home equity loans and three variations of a HELOC.
You can apply for a home equity loan or HELOC online or in person. You can get personalized rates without a hard credit check, but you’ll have to speak with a representative on the phone.
Flagstar Bank offers home equity loans and HELOCs in 49 states (all but Texas) — but check your specific ZIP code for availability.
Flagstar doesn’t have a full online application, only a form where you can submit your information to be contacted by a representative. You can get a custom rate based on a soft credit check and some additional information. Flagstar’s tedious application process may be frustrating, but the lender does offer several customer support options, including 24-hour loan support over the phone.
Truist offers standard, interest-only and rate-lock HELOCs to borrowers in 15 states, primarily in the Southeast. Truist doesn’t offer home equity loans.
You can apply for a HELOC on Truist’s website. You won’t be required to sign up for an account, but if you already have one with Truist, you’ll be able to auto-fill your application. Truist advertises that the turnaround time from application to closing averages 30 to 35 days, one of the fastest times among its peers (not including newer, nontraditional startup companies like Figure).
Figure uses a unique combination of technology and banking to provide customers in 41 states with HELOCs. Though officially called a HELOC, Figure’s HELOC has characteristics of both a traditional HELOC and a home equity loan. Borrowers withdraw the full line amount (minus the origination fee) at the time of origination. Once you repay the initial balance at a fixed rate, you will be able to make additional draws over a specified period.
Figure says it will deliver funds in as little as five days. The application is entirely online and takes about five minutes to complete, according to Figure.
The Pentagon Federal Credit Union (widely known as PenFed) offers HELOCs in all 50 states, as well as Guam, Puerto Rico and Okinawa, Japan. PenFed is a credit union so its products are available only to members, but you can easily become a member by opening a PenFed savings account and funding it with at least $5.
With PenFed, you can choose between a standard, interest-only or rate-lock HELOC. PenFed doesn’t offer home equity loans. To apply for a HELOC with PenFed, you’ll have to request a callback over the phone. This feature may be a major drawback for customers who prefer online services and applications.
A home equity line of credit, or HELOC, is a type of revolving credit similar to a credit card, but that’s secured by your home. You’ll be able to access funds from your HELOC as you need them, instead of taking out a set amount at the onset, like with a home equity loan. There’s usually a minimum withdrawal amount based on the total amount of your credit line. 
A HELOC is considered a second mortgage. It’s a loan taken out against your home while your original mortgage is still being paid off.
HELOCs are commonly used for home improvements, such as adding solar panels, as well as debt consolidation and other large expenses. There are no restrictions on how you use the money from a
HELOC, but there’s always a risk in taking on debt that’s tied to your home.HELOCs typically have variable-rate APRs, meaning your interest rate adjusts over time based on the benchmark US prime rate. The prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest US banks, according to the Wall Street Journal.
Similar to a home equity loan, a HELOC lets you borrow against the percentage of your home that you’ve fully paid off. Since your home serves as collateral for the loan, it’s important to have a repayment plan in place so you don’t lose your property. 
HELOCs are typically divided into two periods: a draw period and a repayment period. During the draw period (often 10 years), you can take funds from your HELOC up to the amount of your credit line. With interest-only HELOCs, you’re required to make monthly payments toward the accrued interest, not the principal, during the draw period. 
Once the draw period is over, you can no longer withdraw money, and you’ll enter the repayment period, where you begin paying back both principal and interest. While terms may vary by lender, the draw period typically lasts five to 10 years, while the repayment period usually lasts 10 to 20 years.
To qualify for a HELOC you’re typically required to meet the following criteria: 
HELOCs usually have lower interest rates than other financing options like personal loans or credit cards.
You can withdraw funds anytime during the draw period and only have to pay for the amount of money you use, plus interest.
HELOCs have very few restrictions on what the money can be used for.
Lenders often offer discounted rates for an introductory rate period.
Because HELOCs are secured by your house, you could lose your home if you default on your debt.
HELOCs can have a minimum withdrawal amount.
The interest rate is variable, so your rate and monthly payment could increase unexpectedly.
HELOCs could come with annual fees, application fees, appraisal fees and other closing costs, depending on the lender.
Before applying for a HELOC, make sure you qualify for the loan amount you need and that you meet basic requirements: at least 15% to 20% equity in your home, a good credit score and a low combined loan-to-value ratio (the ratio of all of your outstanding mortgage balances compared to the market value of your property). Given there are other financing options available by leveraging your home equity, such as a home equity loan or a cash-out refinance, make sure a HELOC is the right type of loan for your situation.
Your lender will calculate the amount of equity in your home to determine your loan-to-value ratio, which expresses how much you still owe on your home’s mortgage compared to its current appraised value. Generally, your LTV should be less than 80% and no higher than 90% to qualify. Having a high LTV tells a lender you may be a risky borrower.
Here‘s the basic formula:
$400,000 [outstanding mortgage balance] / $500,000 [current appraised value] = 0.80
Then multiply that answer by 100 to get your LTV ratio expressed as a percent. In this example, you have an 80% LTV ratio.
Most lenders will let you borrow in the neighborhood of 75% to 90% of your home’s value, minus what you owe on your primary mortgage. To determine whether you’ll hit that threshold, you can use the below formula, which assumes a lender will allow you to borrow up to 85% of your home equity:
$500,000 [current appraised value] X 0.85 [maximum equity percentage you can borrow] – $400,000 [outstanding mortgage balance] = $25,000 [what the lender will let you borrow]
It’s important to interview multiple lenders when you want to use your home equity for financing. The more banks and lenders you contact, the better your chances of finding more favorable rates and fees overall. You can start with the lender or bank that issued your first mortgage, since they’ve already approved you for one loan and you have an existing relationship. You might also compare rates from online lenders.
Once you’ve chosen a lender, gather all of your financial documentation to verify you can pay back the HELOC. You’ll need proof of income and employment, and in some cases, you may need to pay for a new home appraisal to assess the current market value of your property. 
After all your financial paperwork is submitted, the final step is to close on the loan, which can take anywhere from 30 to 60 days depending on the lender.
The offers you receive will vary from lender to lender, but the more you know about the specific ins and outs of those offers, the better your chances of saving money and interest. There are a few major factors to consider when deciding which HELOC offer to go with. 
Since HELOCs have variable interest rates tied to the prime rate, your interest rate will go up and down over time. Be aware of what the prime rate is and know that you’ll be paying a markup on that interest rate. 
In the beginning, most HELOCs come with a lower introductory rate period, but the length of those initial rates will differ by lender, and you want to find the longest one possible. The longer you have a lower interest rate, the more money you’ll save over time. There are also some lenders who allow you to fix your interest rate for a portion of the loan, which offers a more predictable payment.
Ask about your maximum HELOC interest rate cap. HELOCs have lifetime interest rate caps, so even if the prime rate rises and surpasses your rate cap, your HELOC rate won’t increase any further. If you have an existing HELOC, you can attempt to negotiate a lower rate with your lender. 
“Ask your current HELOC lender if they will fix the interest rate on your outstanding balance,” said Greg McBride, chief financial analyst at Bankrate, CNET’s sister site. “Some lenders offer this, many do not. But it is worth asking the question.”
Some lenders require minimum withdrawals regardless of your total line of credit. You don’t want to get stuck making interest payments on funds you don’t actually need if that amount is less than the mandatory minimum withdrawal amount set by your lender. It’s also important to know when your draw period ends so you can afford the larger principal-plus-interest payments once you enter your repayment period.
We evaluated a range of lenders based on factors such as interest rates, APRs and fees, how long the draw and repayment periods are, and what types and variety of loans are offered. We also took into account factors that impact the user experience such as how easy it is to apply for a loan online and whether physical lender locations exist.
A good HELOC rate is considered anything at or below the national average. As of May, average HELOC interest rates are in the low 9% range. 
Some lenders advertise even lower interest rates, but those rates are typically available only to borrowers with excellent credit and an LTV ratio below 80% (often close to 60% or 70%). Getting a better rate could depend on your financial situation, including your credit score, income level, debt-to-income ratio and how much equity you have in your house.
HELOCs can be useful for large expenses, like home renovations, medical emergencies or college tuition. They’re particularly good for ongoing expenses because you’ll only need to pay back what you spend during the draw period.
A HELOC can be a good option if you have big expenses coming up that you need cash to cover. If you’re unsure how much money you’ll need and don’t need all the funds upfront, a HELOC gives you plenty of flexibility. An added advantage is that current HELOC rates are comparatively lower than other types of financing, like personal loans or credit cards. But if you’re unsure you’ll be able to comfortably repay the loan, a HELOC isn’t worth the risk of losing your home.
While HELOCs are variable-rate revolving lines of credit, home equity loans are fixed-rate installment loans. With a home equity loan, you get a sum of money when you take out the loan and pay it back (with interest) in fixed monthly payments. 

With a HELOC, you can draw from a line of credit as much as you want, whenever you want during the draw period and pay it back with interest during the repayment period. Your monthly payment will depend on how much you draw and the current interest rate on your HELOC. 

The interest rates you’ll get for either loan are determined by your credit score, home equity, where you live, your property’s value and other factors.
CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive may impact how products and links appear on our site.
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