January 2024: Uncover the top HELOC rates for your pocket!

January 2, 2024
1 min read

HELOC (Home Equity Line of Credit) rates are an important consideration for homeowners looking to tap into their home equity. The current interest rates for a $100,000 credit line vary depending on the loan-to-value (LTV) ratio:

  • 60% LTV: 9.12%
  • 80% LTV: 9.27%
  • 90% LTV: 9.95%

The most creditworthy borrowers have the best chance of securing the lowest HELOC rates, which should be below the overall average rate of 9.27%.

Lenders review credit and financial histories to determine HELOC rates, but borrowers may still be subject to market forces. The prime rate, influenced by the Federal Reserve’s rate policy, has been steadily increasing, resulting in a climbing average HELOC rate.

HELOC interest rates are typically lower than unsecured debt, such as personal loans or credit cards, due to the collateral value of a borrower’s home. HELOCs usually have variable-rate APRs, meaning monthly payments can fluctuate based on the prime rate.

To find the best HELOC lender, homeowners should shop around for at least three quotes and compare financing options. Negotiating rates and terms, as well as locking in a legitimate lender, are also important

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