The average interest rate for home equity loans in the United States stood at 6.95% as of April 14, 2026, while the average rate for home equity lines of credit reached 7.14% on the same date. Both products allow homeowners to tap into their home equity as needed, using the borrower's home as collateral.

The annual percentage rate for home equity loans ranged from 6.05% to 7.49%, and the annual percentage rate for HELOCs ranged from 6.05% to 8.15%. The annual percentage rate represents the full cost of borrowing, including fees and other expenses. Home equity loan interest rates are fixed, while HELOC interest rates are variable and change each month according to market conditions.

The rates on home equity products remained below those on other common forms of consumer borrowing. As of April 14, 2026, interest rates on personal loans were in the double digits, and credit card interest rates were averaging over 20%.

Home equity levels in the U.S. reached a record high last summer, expanding the pool of equity available for homeowners to tap. Inflation was reported at 3.3%, the highest level in years.

Homeowners who use a home equity loan for eligible home repair projects can deduct the interest paid from their taxes for the year in which the loan was used. The same tax deduction applies to interest paid on a HELOC used for eligible home repairs and improvements for the year in which the line was used.

A home equity loan provides a lump-sum disbursement at a fixed rate, giving borrowers predictable monthly payments over the life of the loan. A HELOC, by contrast, functions as a revolving line of credit that borrowers can draw from as needed, with the variable rate adjusting monthly based on market conditions. The choice between the two products depends on whether a borrower needs a set amount upfront or ongoing access to funds.