What are today’s HELOC and home equity loan interest rates?

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Updated on: September 11, 2026 / 8:58 AM EDT / CBS News

In the elevated interest rate climate of recent years, there have been few affordable borrowing options to choose from. Personal loan interest rates, for example, have been frozen at around 12% for months, while credit card interest rates have declined recently, but only from a recent record high of 23%. Double-digit rates for both make borrowing with either especially cost-prohibitive right now, even with the potential for interest rate cuts to be issued later in 2025.

One smart and effective way to borrow, however, is readily available for homeowners right now via their home equity. With the average equity level comfortably sitting over $300,000 currently, borrowing with a home equity loan or home equity line of credit (HELOC) makes sense. And with rates here significantly lower than most alternatives, and with those rates poised to drop alongside a declining federal funds rate in the months ahead, either could be the ideal way to borrow a large sum of money at an affordable cost.

Before getting started, homeowners should…

Original source: https://www.cbsnews.com/moneywatch/