Although home equity loan rates typically run higher than traditional mortgage rates, they’re influenced by many of the same economic and financial factors. Home equity loan rates can also change daily, so it’s worth monitoring them regularly to track trends and ensure you’re ready to lock in a rate when you see a good deal.
Explore Today’s Home Equity Loan Rates
More than 43% of mortgaged homes are equity-rich, meaning loan balances are less than half their market value, according to a recent report from Attom, a real estate data company. If you’re one of those homeowners and need to cover a large expense, a home equity loan could be worth considering.
Also known as a second mortgage, a home equity loan is a type of financing that allows you to borrow money by leveraging the equity you’ve built in your home over time. Because your property serves as collateral for the loan, home equity loan rates are typically lower than rates on unsecured borrowing options such as personal loans and credit cards, which usually carry more risk for lenders because they’re typically not backed by an asset.
You can use home equity loan funds for any type of expense, including the following common expenses:
