Current interest rates for HELOCs and home equity loans today
August 2025: Home Equity Loans and HELOC Rates on the Decline
In the current financial landscape, homeowners in the United States have a variety of options to borrow large sums of money, with home equity loans and Home Equity Lines of Credit (HELOC) being two popular choices. As of August 8, 2025, the interest rates for these products vary, but they generally fall within specific ranges.
Home Equity Loan Rates
The average home equity loan rate currently averages around 8.3% to 8.4% for 10-year loans, with 5-year loans slightly lower and 15-year loans around similar levels. Some lenders offer home equity loans with APRs as low as 6.0% for 5-year terms, rising to about 6.75% for 15-year terms, depending on borrower creditworthiness and lender specifics.
HELOC Rates
HELOC rates are variable and currently average around 8.1% to 8.3%. Forecasts predict possible declines later in 2025 to around 7.25% if the Federal Reserve cuts rates. The average HELOC rate is currently 8.13%, according to Bankrate.
Choosing the Right Product
Homeowners should choose the right product for their needs and budget, considering the potential risk of foreclosure if payments aren't made as agreed to. It's essential to shop around for the best product and terms, as not all lenders will offer the same rates and terms for HELOCs and home equity loans.
Experts suggest that a good 10-year home equity loan rate in August 2025 is below about 8.25%, and below 8% would be considered very strong. Rates are influenced heavily by borrower credit scores, lender competition, loan-to-value ratio, and Federal Reserve policy actions.
In summary, typical home equity loan rates in August 2025 range from about 6% (best cases) to 8.4% (averages) depending on term and credit, while HELOC rates average about 8.1% but may fall. Borrowers with strong credit can secure lower APRs than these national averages.
This data reflects current market conditions including recent modest rate decline trends after 2024 highs. For more information and expert advice on personal finance, visit ourNews.com's Managing Your Money section, where Senior Managing Editor Matt Richardson writes and edits content to help you make informed decisions about your money.
- In the news section of OurNews.com, Matt Richardson regularly provides insightful articles regarding home equity loans and HELOC rates, which are vital pieces of information for prospective borrowers.
- Apart from finance and home-and-garden articles, the lifestyle section of OurNews.com might offer tips on optimizing personal-finance management, providing valuable advice to better organize one's home and savings.
- In the field of finance, the average home equity loan rate as of August 8, 2025, for a 10-year loan is around 8.3%, while the HELOC rate is slightly lower at approximately 8.1%.
- Keeping track of financial changes, such as interest rates on home equity loans and HELOCs, is important when planning significant home renovations or making personal-finance decisions.
