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RJ Colosimo

On October 30, the avg. APR for a $100K HELOC at 60% loan-to-value held steady at mid-7%, offering homeowners a benchmark for comparing lenders.
The US avg. APR on a $500K, 30-yr home equity loan at 60% loan-to-value also held steady on October 30, at mid-8%.
Home equity loans provide a fixed-rate lump sum, while HELOCs offer variable-rate revolving credit. Both use your home as collateral, an important consideration when borrowing.
Compare loan amounts, repayment terms and lender offers: rates vary with loan-to-value, credit profile and overall finances, while shorter terms generally mean higher monthly payments.
HELOCs let homeowners draw funds as needed and pay interest only on the amount used, including for home improvements, debt consolidation or other major expenses.

Current HELOC Rates

The avg. 30-yr fixed refinance rate was in the low-7% range as of October 29, giving homeowners a benchmark for comparing offers.
A common rule of thumb suggests considering refinancing when your new rate is one percentage point below your existing rate, while weighing upfront costs.
A cash-out refinance replaces your loan with a larger one and provides the difference in cash; homeowners typically need ~20% equity or more.
Refinance closing costs can run from ~2% to ~6% of the loan amount; review your loan estimate for lender, appraisal, and other fees.
Homeowners can compare offers from their current lender and others; some lenders may waive part of the closing costs as an incentive to stay.