Best Home Equity Line of Credit HELOC Rates for July 2025

Make an initial withdrawal when you open your account and receive a 0.10% interest rate discount for each $10,000 withdrawn (up to a maximum discount of 1.50%) adatext . Processing times are currently estimated to take 30 to 40 calendar days to close on a new home equity loan or HELOC once we receive your application. However, closing times vary based on many factors, so check with your Equity Processor early in the process to better understand when you can expect to close.

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We like that BMO Harris offers both home equity loans and three types of HELOCs almost nationwide. We found its online application less straightforward than its competitors. A home equity line of credit, or HELOC, is a second mortgage that allows you to use the equity you’ve built in your property to borrow money.

Plus, the ability to switch between variable and fixed rates gives you some flexible options to meet your financial needs. Even though rates continue to rise, a HELOC may still be a good idea for you if you have significant equity in your home. HELOC rates are closely tied to the federal funds rate target set by the Federal Reserve. Banks use the federal funds rate to set their prime rate, or the rate they offer their best, most creditworthy customers. The Wall Street Journal compiles this prime rate from hundreds of commercial banks each day, publishing a standard “Prime Rate” that banks across the country use to price their loan products. Loan approval is subject to credit approval and program guidelines.

Here are the average rates for home equity loans and home equity lines of credit as of July 23, 2025. The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners. FourLeaf Federal Credit Union is one of the few lenders that allows you to convert some or all of your variable-rate HELOC into a fixed rate (with a $10,000 minimum).

Compare home equity options.

In Canada, you can find two main types of HELOCs – combined and stand-alone – each with its own structure and repayment rules. The Canadian housing market had a slow start to 2025, as tariff concerns and economic uncertainty weighed on buyer confidence. As mortgage rates are now stable after seven rate cuts and three rate holds, home sales picked up slightly in June. Anyone shopping for a mortgage rate in Canada right now should be aware of the economic factors below. You’ll also need to pass a stress test, much like is interest on a home equity line of credit you would when trying to obtain a mortgage. You’ll be stress tested at either the qualifying rate of 5.25% set by the Office of the Superintendent of Financial Institutions (OSFI), or your contract rate + 2%, whichever is higher.

Good online application experience

There are exceptions; some lenders will let you borrow against your home equity at higher loan-to-value ratios. The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. In the elevated interest rate climate of recent years, there have been few affordable borrowing options to choose from.

Why Bank of America Stands Out

• Be aware of what the prime rate is and know that you’ll be paying a markup on that interest rate.
• The best HELOC or home equity loan, most folks would say, is the one that costs the least.
• The presence or absence of such fees tends to be entirely at the lender’s discretion.
• With a home equity loan, you receive a one-time lump sum upfront.

Since a HELOC is backed by your home, you’ll likely get a better interest rate than you would for an unsecured loan. Once you’ve qualified for the loan, the lender will calculate your interest rate. HELOC rates can be influenced by several factors, the most significant being the current market conditions and Prime Rate. Since HELOC rates are usually tied to the Prime Rate, they’ll often fluctuate with it. The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.

• But, while a home equity loan is a lump-sum payment, a HELOC is a line of revolving credit like a credit card.
• If you can qualify for membership, Navy Federal could be your best option for a HELOC.
• Say you have a home worth $300,000 with a balance of $200,000 on your first mortgage and your lender will allow you to access up to 85% of your home’s value.

Home equity lines of credit (HELOC) are variable-rate lines. Rates as low as 7.750% APR and 8.750% for Interest-Only Home Equity Lines of Credit assume a 750 FICO. Rates are based on credit history, loan-to-value (LTV)/combined loan-to-value (CLTV)/high credit loan-to-value (HLTV) ratio, loan amount, and occupancy, so your rate may differ.

Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date. You’ll need an appraisal to secure a HELOC in most cases, but it’s typically less in-depth than with a purchase mortgage. CMG Financial bypasses the appraisal process, enabling borrowers to receive funding in under five business days. Figure boasts a 100% online application process — including online closing, where available. Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.

The maximum amount of your home equity line of credit will vary based on the value of your home, the lender’s maximum borrowing limit and how much you owe on your mortgage. Two quick calculations can give you an idea of what you might be able to borrow with a HELOC. You can make withdrawals from your line of credit up to your limit, which you’ll pay back in monthly installments.

Loan Details:

The best HELOC or home equity loan, most folks would say, is the one that costs the least. But low cost is not just about a competitive interest rate. Upfront fees, closing costs and ongoing charges can add up to a significant chunk of money, too.