HELOC Interest Rate

HELOC Interest Rate is a HELOC loan interest rates table that shows today's HELOC rates from different lenders. You can see the HELOC APR and interest rate for each lender and the qualifying criteria.

How does HELOC interest work?

The HELOC interest rate fluctuates based on an underlying index rate benchmark known as the  U.S. Prime Rate. When the prime rate changes, the HELOC interest rate will also change. For example, if the prime rate is 8%, and the bank adds a 1% margin, then the HELOC interest rate will be 9%. It is usually a good idea to shop around and compare a few lenders to see which lender offers you the best rates on HELOC. The 9% HELOC interest rate is what you pay in the beginning, the rates may go up or down depending on the prime rate which changes frequently.

Are HELOC interest rates fixed or variable?

HELOC has a variable interest rate. This means the interest you pay for your HELOC balance fluctuates each month. Some lenders may offer an initial fixed rate for a limited period, and then the rate changes after this period.

HELOC Loan Interest Rates

Using the HELOC loan interest rates table above, you can estimate the monthly payments for your HELOC based on today's HELOC rates. You can also compare the HELOC home equity rates from the different lenders.

What is a HELOC loan?

A HELOC loan is a loan you can apply for as a homeowner using the equity in your home. The more equity you have in your home, the more money you can borrow. The benefit of a HELOC loan is that it has a lower interest rate than other types of loans such as a personal loan, or credit card. Depending on the value of your home and the amount of equity you have, the loan size can also be much larger than other types of loans. Homeowners can often borrow up to 85% of their home equities. You can use the HELOC loan for any purpose, such as home improvement, college education, down payment for a second home, business ventures, or investment opportunities. The downside of a HELOC loan is that it uses your home as collateral. If you fail to make payments, you risk losing your home.

How does a HELOC loan work?

A home equity line of credit or HELOC works very similar to a credit card where the homeowner is given a line of credit. He can use it however he wants, and is only required to pay interest on the amount he uses. There are two periods for a HELOC loan, a draw and a repayment period. The draw period can last 10 years in which the borrower can draw money up to the limit and is only required to make interest payments. After the draw period is over, the HELOC loan enters the repayment period. During the repayment period, the borrower is no longer able to draw money and needs to make a monthly payment that covers both the interest and principal as with any other loan.