Overview
- The average home equity line of credit rate fell to about 7.04% this week, a new low since 2022, according to Bankrate data reported by CBS News.
- At today’s average rate, a $20,000 HELOC costs about $233 a month on a 10-year plan or $180 on a 15-year plan, assuming the full line is used and repaid right away.
- HELOCs now undercut many alternatives, with credit cards averaging over 20% and personal loans over 12%, based on figures cited by Bankrate.
- A HELOC usually offers a 10-year period to draw funds and a 20-year period to repay, and the rate adjusts over time, so monthly costs can change.
- The line is secured by the home, and missed payments can lead to loss of the property, which is driving careful budgeting even as roughly $11 trillion in tappable equity encourages uses like renovations or debt consolidation.