What drives home equity loan interest rates?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. There are a few different factors that can impact the home equity borrowing rates you’re offered. Getty Images After years of home values ticking upward, most homeowners now have a valuable financial resource at their disposal: their home’s equity . Right now, the average homeowner has about $320,000 in home equity that can be tapped into at an affordable rate. That, in turn, has led home equity lending to become an attractive option for funding everything from major expenses to home improvements or even debt consolidation. And, when you add in the fact that home equity borrowing rates are much lower than most other lending options, it’s easy to see why so many homeowners opt for this type of borrowing over credit cards and personal loans. But while home equity rates tend to be lower than the alternatives, the cost of borrowing against your home’s equity can vary significantly based on a range of factors, so it’s important to understand what drives these rates if you