Home Equity Loan Rates for October 2024

Current $50k home equity loan rates are as low as 6.88%. See your best home equity rates today by choosing your property type.

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Current Home Equity Loan Rates

LOAN AMOUNT

APR AS LOW AS Rates are calculated based on conditional offers for both home equity loans and home equity lines of credit with 30-year repayment periods presented to consumers nationwide by LendingTree’s network partners in the past 30 days for each loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

$25,000

7.13%

$50,000

6.88%

$100,000

6.88%

$150,000

6.88%

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LendingTree leaf icon Written by Rene Bermudez | Edited by Crissinda Ponder | Updated October 1, 2024

Home equity loan rates are relatively high right now, especially compared to the low rates we saw before the pandemic, but have been slowly falling for the second half of 2024. We can expect home equity loan interest rates to move in the same direction as mortgage rates, says Jacob Channel, LendingTree’s senior economist. However, the relationship isn’t one-to-one and home equity loan rates may not move by the exact same amount as mortgage rates, even if they are trending in the same direction.

Compare offers from top home equity loan lenders

Best For:
Low credit scores
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Best For:
High LTV ratios
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Best For:
Online experience
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Best For:
Discounts
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Best For:
Fast closings
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How to get the best home equity loan rates on LendingTree

There are many lenders to choose from, and each of them set their own home equity loan requirements. The approval guidelines are usually a bit more strict than traditional mortgages, so you should strive to:

  1. Boost your credit score. The lowest score that most home equity lenders accept is 620, but others may set their minimums at 660 to 680. The higher your credit score, the better your home equity loan interest rate will be.
  2. Reduce your DTI ratio. Lenders divide your total debt, including your new home equity loan, by your pretax income to find your debt-to-income (DTI) ratio. The DTI limit is usually 43%, but a lower DTI could snag you a better rate.
  3. Borrow less of your home’s value. The typical maximum loan-to-value (LTV) ratio is 85%, but lenders offer better rates if you borrow a smaller amount, which is less of your home’s value.
  4. Avoid second home or investment property home equity loans. The best home equity loan rates go to homeowners that live in their home as a primary residence.
  5. Shop around. Home equity lenders may offer special incentives to earn your business, like discounted rates if you have other deposit or credit accounts with them. Compare the costs and rates from at least three lenders to ensure you’re getting the best deal. Get started by reviewing our choices for the best home equity lenders below. Green down arrow

  Can I get a home equity loan with bad credit?

It’s possible to get a home equity loan with bad credit, but you may not qualify for as much equity as you need or want. Lenders may reduce your maximum LTV ratio and charge you a significantly higher interest rate. If your scores are below 620, consider a government-backed program like an FHA cash-out refinance or VA cash-out refinance.

LendingTree leaf icon Don’t know your credit score? Get your free score on LendingTree Spring today.

How do I calculate my home equity loan amount?

The easiest way to figure out how much you can borrow with a home equity loan is to let our home equity loan calculator do the math for you. You’ll just need three pieces of information:

  1. An estimate of your home’s value
  2. Your current mortgage balance
  3. Your current credit score
Note: The results are based on a maximum 85% LTV ratio.
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Average 30-year home equity loan monthly payments

Loan amountMonthly payment
$25,000$168.43
$50,000$328.46
$100,000$656.93
$150,000$985.39

Average rates disclaimer Rates are calculated based on conditional offers for both home equity loans and home equity lines of credit with 30-year repayment periods presented to consumers nationwide by LendingTree’s network partners in the past 30 days for each loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

The best home equity lenders of 2024

Best home equity loan for low credit scores: Rocket Mortgage

(2,617)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(2,617)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

5 stars

90%

$45K

680

$7,494

Why we chose Rocket Mortgage

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Rocket Mortgage offers a home equity loan for borrowers with credit scores as low as 680, though you’ll need at least a 760 score to borrow up to a 90% LTV. Rocket also offers the option to combine your first and second mortgage with a cash-out refinance.

Read our full Rocket Mortgage review.

How to qualify

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You’ll have the best chance of qualifying for a mortgage with Rocket Mortgage if you have a 70% loan-to-value (LTV) ratio or better, according to nationwide data from 2022. That year, about 55% of approved borrowers had a debt-to-income (DTI) ratio under 40%.

Best home equity loan for online experience: TD Bank

User reviews coming soon
User reviews coming soon

4 stars

5 to 30 years

$10K/$500K

0.25% rate discount for eligible borrowers

$3,212

Why we chose TD Bank

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TD bank’s website is streamlined and easy to use, with a rate tool that customizes options based on your location. Terms range from five to 30 years and rate information is simple to find. TD Bank offers borrowers a 0.25% interest rate discount for its home equity loan products if you open a TD bank checking or savings account with automatic payment deductions. An added bonus: A TD Bank home equity loan can be secured by an investment property — most home equity lenders only allow you to borrow against your primary residence.

Read our full TD Bank mortgage review.

How to qualify

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You’ll have the best chance of qualifying for a mortgage with TD Bank if you have a 64% loan-to-value (LTV) ratio or better, according to nationwide data from 2022. That year, about 56% of approved borrowers had a debt-to-income (DTI) ratio under 40%.

Best for home equity loan rates and closing cost discounts: BMO Harris

User reviews coming soon
User reviews coming soon

4 stars

5 to 20 years

0.50% rate discount for eligible borrowers

$3,747

Why we chose BMO Harris

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BMO Harris offers the highest discounts on home equity loan rates of any lender we reviewed. They offer loans with terms that range from five to 20 years. You can check rates online, browse detailed information about loan programs and even watch mortgage-related videos on their website. There’s also an online application and a guide to help you through the process.

Read our full BMO Harris mortgage review.

How to qualify

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You’ll have the best chance of qualifying for a mortgage with BMO Harris if you have a 64% loan-to-value (LTV) ratio or better, according to nationwide data from 2022. That year, about 55% of approved borrowers had a debt-to-income (DTI) ratio below 40%.

Best home equity loan for fast closings: Spring EQ

(726)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(726)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

4 stars

5 to 30 years

$500K

14 days

$963

Why we chose Spring EQ

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Spring EQ is the only lender we reviewed that specializes exclusively in home equity loan products. You can also borrow up to 95% of your home’s value — much more than the max 85% LTV most lenders allow. Homeowners can convert equity to cash in as little as 14 days, although 21 days is the average, according to Spring EQ’s website.

Read our full Spring EQ mortgage review.

How to qualify

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You’ll have the best chance of qualifying for a mortgage with Spring EQ if you have a 74% loan-to-value (LTV) ratio or better, according to nationwide data from 2022. That year, about 52% of approved borrowers had a debt-to-income (DTI) ratio below 40%.

What is a home equity loan?

A home equity loan is a second mortgage that converts your home equity into cash. Home equity is the difference between how much your home is worth and the amount you owe on your outstanding mortgage balance.

When you get a home equity loan, you receive the money all at once and make fixed monthly payments to pay it off. You can use the cash from a home equity loan to make home improvements, pay down high-interest debt or cover any other expense you choose.

Green calculator icon See how much you could borrow with a home equity loan calculator.

Home equity loan requirements

  • DTI ratio: 43% maximum
  • Credit score: 620 minimum
  • LTV ratio: 85% maximum This is the standard LTV ratio maximum. However, some home equity lenders let you borrow up to 100% of your home’s value.

  Is a home equity loan tax deductible?

Yes, if the funds from the home equity loan are used for home improvements, you can deduct the interest from your taxable income. Learn more about how to get your home equity loan tax deductible.

How do home equity loan interest rates work?

Most home equity loans come with fixed interest rates, which means that you can enjoy consistent payments that won’t change over time. Because a home equity loan is paid out to you all at once, the amount of money you’re paying interest on never changes.

How are home equity loan rates determined?

  • 1. Your credit score

    The lower your credit score, the better your rate will usually be. Most lenders will allow a 620 minimum score, but some set the bar even higher at 660 or 680.
    LendingTree leaf icon Get your free credit score on LendingTree Spring today.
  • 2. Your DTI ratio

    Your debt-to-income (DTI) ratio measures how much your monthly debt load is compared to your gross monthly income. Home equity lenders typically allow a 43% maximum DTI ratio, but the lower the ratio is, the better your rate offers will be.
  • 3. Your LTV ratio

    Your loan-to-value (LTV) ratio compares how much you’re borrowing to your home’s value. The typical maximum LTV ratio is 85%, though lenders offer better rates if you borrow less. But some lenders offer high-LTV home equity loans with LTVs of up to 100% if you’re willing to accept a higher rate.

How home equity loan rates compare to other loan options

Let’s say you need to borrow $100,000 and you’re wondering what your best option is: a fixed-rate loan (like a home equity loan) or a variable-rate option.

Fixed-rate options

You can save money by choosing a cash-out refinance, which typically offers a lower rate than a home equity loan. However, in order to access this option you have to alter your first mortgage, since you’re refinancing it.

A home equity loan may be the better choice for someone who wants to borrow at a fixed interest rate, but not touch their primary mortgage balance.

Variable-rate options

In a market with falling rates, you may be able to save by choosing a variable-rate loan, like a HELOC or adjustable-rate cash-out refinance. But if rates are rising, a these can get more expensive over time and quickly overtake the rate on a home equity loan.

A home equity loan may be a better choice for someone who wants stable payments that never change, or who is borrowing in a market with inflation and high interest rates.

  How much does a $100,000 home equity loan cost?

At current rates, you would pay about $958 each month for a $100,000 home equity loan. Assuming a 20-year repayment term, you’ll end up paying $130,000 in interest over the life of that loan.

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Pros and cons of home equity loans

ProsCons

  Lower interest rates: You’ll pay lower interest rates than you would with credit cards or personal loans.

  Fixed rates: Your payment will be the same each month because your rate doesn't change.

  Tax implications: You may be able to deduct home equity loan interest from your tax bill.

  One-time closing costs: Your closing costs will typically be on par with HELOC closing costs, but you won’t have any ongoing membership or inactivity fees.

  Very flexible: You can use the money for any purpose.

  Second mortgage rates: You’ll pay a higher rate than with a HELOC or cash-out refinance.

  Tougher guidelines: You may need higher scores and lower debt to qualify than you would with a cash-out refinance.

  Reduced equity: You’ll lower the available equity in your home.

  Another monthly payment: You’ll have two monthly house payments.

  Collateral requirement: You could lose your home if you default on your payments.

What is the downside to a home equity loan?

There are two main disadvantages to home equity loans:

  1. The most important downside is that a home equity loan ties new debt to your home. Not only will this make your finances more complicated, it puts your house at additional risk of foreclosure. If the worst happens and you can’t keep up with either your mortgage payments or your home equity loan payments, you could lose both the place you lay your head and your biggest asset all at once.
  2. Home equity loans are a more expensive way to borrow money than other options that use your home as collateral. However, if a cash-out refinance or home equity line of credit isn’t right for you, it can make sense to take on the heftier costs of a home equity loan.

Alternatives to home equity loans: Which has the best rates?

Home equity loan rates vs. HELOC rates

HELOC rates are usually slightly lower than home equity loan interest rates.

Consumers sometimes confuse home equity loans with home equity lines of credit (HELOCs), but they work very differently. A HELOC is a line of credit that can be used like a credit card, and they almost always come with variable rates.

A home equity loan is best if:A HELOC is best if:
  • You want a fixed interest rate
  • You want predictable monthly payments that stay the same
  • You want money in one lump sum
  • You need all the money immediately
  • You understand that you'll have to pay interest on the full amount, whether you use all of the funds or not
  • You're OK with a variable rate
  • You don't mind having payments that change over time
  • You want a competitive interest rate for borrowing cash
  • You want ongoing access to funds, not a one-time lump sum
  • You want to pay interest only on the amount you use
  • You want the flexibility to access funds, pay them off and reuse that portion of your credit
LendingTree leaf icon See current HELOC rates and top lenders today.

Home equity loan rates vs. cash-out refinance rates

Cash-out refinance rates are usually lower than home equity loan interest rates.

A cash-out refinance gives you access to cash by replacing your existing mortgage with a larger one. Because it’s a first mortgage, you can access that cash at lower interest rates than you could with second mortgages, like HELOCs and home equity loans. A cash-out refi also has more lenient requirements overall than a home equity loan, making it easier to qualify for. For example, you could get an FHA cash-out refinance with a credit score as low as 500.

A home equity loan is best if:A cash-out refinance is best if:
  • You want to leave your first mortgage balance alone
  • You want to save money on closing costs
  • You can get a better interest rate on a new mortgage
  • Your credit scores are too low for a home equity loan
LendingTree leaf icon Learn about cash-out refinance options.

Home equity loan rates vs. personal loan rates

Personal loan rates are usually higher than home equity loan interest rates.

If you prefer to leave your home equity alone, you may qualify for an unsecured personal loan. The rates are often higher than home equity products, but you won’t have to worry about the lender foreclosing on your home if you default on your payments.

A home equity loan is best if:A personal loan is best if:
  • You want a lower rate
  • You want a longer repayment term
  • You want a lower payment
  • You need a higher loan amount
  • You don’t want to use your home as collateral
  • You don’t have enough equity to take out a home equity loan
  • You need the money faster
  • You need a lower loan amount
LendingTree leaf icon See top lender personal loan rates today.

Frequently asked questions

Although most home equity lenders let you tap up to 85% of your home’s value, some lenders may offer high-LTV home equity loans that allow you to borrow more. Use our home equity loan calculator to estimate your home equity borrowing power.

It may take two to four weeks to close on a home equity loan. You’ll usually receive your funds following a three-business-day waiting period after your closing.

Home equity loan rates are often higher than interest rates on traditional mortgages. Usually, the more you borrow, the higher your rate will be. Your credit score and loan term also have an impact on the rate you’re offered.

Yes, a home equity loan is often called a second mortgage, since it’s usually attached to a home already secured by a first mortgage. If you default on the loans secured by the home and go into foreclosure, the home equity loan will be second in line to be repaid.

How we chose our picks for the best home equity loan lenders

To determine the best home equity loan lenders, we reviewed data collected from 35 lender reviews completed by the LendingTree editorial staff.

Each lender review gives a rating between zero and five stars, based on several factors including loan features and loan variety, digital application processes and the availability of product and lending information online. To be eligible for the “best of” home equity loan title, lenders must have a lender review rating of at least four stars. To be considered for our “best overall” pick, lenders must issue mortgages in at least 35 states.

We awarded extra points to lenders that:

  • Publish home equity loan rates online
  • Provide detailed information about one or several different home equity loan options
  • Offer a loan-to-value (LTV) ratio above the 85% industry standard
  • Offer fast closing options
  • Offer products with rate discounts or no closing costs

Our editorial team brought together the data from our lender reviews, as well as the scores awarded for home equity-specific characteristics, to find the lenders with a product mix, information base and guidelines that best serve the needs of home equity loan borrowers.

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