Updated March 2026·CompareBankLoans Editorial Team·Fact checked

Compare Home Equity Loan Rates

Tap your home's equity to fund major expenses at rates well below credit cards or personal loans — without refinancing your mortgage.

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~8.5%

Average HEL rate

Up to $500K

Maximum loan amount

5–30 yrs

Available repayment terms

PersonalHome EquityAutoDebt ConsolidationSmall Business

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Sample lenders for a good-credit borrower

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3 representative offers shown before quiz personalization

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Representative sample borrower: good credit, mid-range loan amount, standard-purpose request. Use the quiz for your own amount, credit, and intent.

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Best Match
L

LightStream

4.9/5

APR

7.49%

Est. mo. payment

$1,112

Loan range

$5K–$100K

Total fees

$0

Get My Rate on LightStream
Terms vary by lenderSame day funding
U

Upstart

4.6/5

APR

7.80%

Est. mo. payment

$1,240

Loan range

$1K–$50K

Total fees

$2,700

Get My Rate on Upstart
Terms vary by lenderNext-day funding
S

SoFi

4.9/5

APR

8.99%

Est. mo. payment

$1,179

Loan range

$5K–$100K

Total fees

$0

Get My Rate on SoFi
Terms vary by lenderSame day funding
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How to evaluate home equity loan rates

A home equity loan lets you borrow a lump sum against the equity you've built in your home. Because the loan is secured by your property, lenders can offer substantially lower rates than unsecured personal loans or credit cards — often 8–12% even for borrowers without perfect credit. You receive your funds upfront and repay on a fixed schedule, making it a smart choice for large, one-time expenses like a kitchen renovation, a medical procedure, or paying off high-interest debt. Most lenders allow you to borrow up to 80–85% of your home's value minus your outstanding mortgage balance. Shopping multiple lenders is especially important here, since rate differences of even half a percent can mean thousands of dollars over a 10- or 15-year term.

Use these comparison lenses to move beyond headline APRs and pick the product that fits.

Loan-to-value ratio (LTV)

LTV is your total mortgage debt divided by the home's appraised value. Most lenders cap borrowing at 80–85% combined LTV. The lower your LTV, the better the rate you'll typically qualify for.

Fixed vs. variable rate

Home equity loans carry a fixed rate and fixed payment — ideal if you want predictability. A HELOC (home equity line of credit) is usually variable and works more like a credit card, better for ongoing expenses.

Closing costs

Home equity loans often carry closing costs of 2–5% of the loan amount — similar to a mortgage. Some lenders offer no-closing-cost options that fold fees into the rate. Always compare the total cost, not just the rate.

Draw vs. repayment periods

For a HELOC, there's typically a 5–10 year draw period where you borrow as needed, followed by a repayment period. For a home equity loan, repayment starts immediately after the funds are disbursed.

Pros

  • Interest rates significantly lower than personal loans or credit cards
  • Fixed rate and monthly payment for easy long-term budgeting
  • Access to large loan amounts — up to $500,000 at some lenders
  • Interest may be tax-deductible when funds are used for home improvement (consult a tax advisor)
  • Doesn't disturb your existing first mortgage or its rate

Tradeoffs

  • Your home serves as collateral — defaulting puts it at risk
  • Closing costs of 2–5% can add thousands to your borrowing cost
  • Approval takes longer than a personal loan (2–6 weeks typical)
  • Reduces the equity available if you later need to sell or refinance
  • Not available to renters or those with little built-up equity

Frequently Asked Questions

How much can I borrow with a home equity loan?
Most lenders let you borrow up to 80–85% of your home's appraised value minus your current mortgage balance. For example, if your home is worth $400,000 and you owe $250,000, you might be able to borrow up to $90,000–$100,000.
What's the difference between a home equity loan and a HELOC?
A home equity loan gives you a fixed lump sum with a set repayment schedule — best for a single, known expense. A HELOC is a revolving line of credit you can draw from as needed, typically at a variable rate — better for ongoing or uncertain costs like a multi-phase renovation.
Is the interest on a home equity loan tax-deductible?
Under current IRS rules, interest is deductible only if the loan proceeds are used to 'buy, build, or substantially improve' your home. Using funds for debt consolidation or vacation, for example, is generally not deductible. Consult a qualified tax advisor for your situation.
How long does it take to close a home equity loan?
Most home equity loans take 2–6 weeks from application to funding. The process typically involves an appraisal, title search, and underwriting review. Some lenders have accelerated programs that close in as little as 10 business days.
Can I get a home equity loan with bad credit?
It's more difficult, but some lenders approve borrowers with scores in the 620–660 range if they have strong equity and a low debt-to-income ratio. Below 620, options narrow significantly — a cash-out refinance or FHA loan may be more accessible.
What happens to my home equity loan if I sell my house?
The outstanding balance is paid off at closing from the sale proceeds, just like your first mortgage. You keep the remaining equity after both loans are satisfied.