Summary
Home equity loans and home equity lines of credit (HELOCs) remain comparatively cheap, with home equity rates currently hovering between 8% and 9%. This relatively low cost of borrowing comes at an opportune time for American homeowners, who have seen immense gains in their home equity levels.
Interest rates are high right now, but HELOC rates are variable. At about 9%, HELOCs are significantly cheaper than credit cards and personal loans. They can make more sense than a cash-out refinance for those who secured a low mortgage rate during the pandemic.
