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Home Equity Loans HELOC Cash-out Refinance

HELOC rates

Here are today's Home Equity Line of Credit (HELOC) rates. See your personalized rates and find out how much cash you can get with our online pre-approval. It only takes a few minutes and won't impact your credit score.

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What impacts your HELOC rate?

Loan type

The kind of HELOC you choose—fixed or adjustable—can change how much your interest rate goes up or down.

Credit score

A higher credit score usually means a lower rate because it shows lenders you’re good at paying back money.

Location

Where you live can affect your rate because lenders look at local housing markets and rules.

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Terms

How long you take to pay back the loan can change the rate—shorter loans often have lower rates.

Home equity

The more equity you have in your home, the better your chances of getting a lower rate.

Your Home Equity Line of Credit (HELOC) rate isn’t one-size-fits-all. Lenders look at several key factors to determine your creditworthiness and lending risk. At Better, we keep this process simple, transparent, and designed to help you make smart borrowing decisions.

Credit score

Rate type

HELOCs offer two primary rate structures that directly affect your monthly payments and total borrowing costs.

`Variable rates`

Variable-rate HELOCs adjust with market conditions, typically tied to the prime rate plus a lender-determined margin. Your rate might be expressed as "prime + 1.5%" for example.

Lenders set your margin based on your credit score and loan-to-value ratio. Homeowners with the strongest financial profiles tend to secure the lowest margins.

Most variable-rate HELOCs include rate caps that limit increases. These caps protect you from extreme rate spikes but still allow significant payment changes over time.

`Variable rate advantages:`

Lower starting rates: Often 1-2% below fixed-rate options
Potential savings: Payments decrease if prime rate drops
Market flexibility: Benefits from economic downturns when rates fall

`Variable rate considerations:`

Payment uncertainty: Monthly costs fluctuate with rate changes
Budget challenges: Harder to predict long-term expenses
Rate risk: Payments can rise substantially if rates climb

Variable rates work best for borrowers who plan to repay their HELOCs quickly or those who are OK with payments that fluctuate.

`Fixed rate`

Fixed-rate HELOCs lock your interest rate for a set period. The rate stays the same regardless of market movements. This stability comes in several forms:

Fully fixed-rate HELOCs: Your entire credit line maintains one locked rate
Hybrid options: Convert portions of your balance from variable to fixed rates
Rate conversion features: Switch from variable to fixed during your draw period

`Fixed rate advantages:`

Payment predictability: Consistent monthly payments simplify budgeting
Rate protection: Shield yourself from rising interest rates
Planning certainty: Easier to forecast long-term costs

`Fixed rate considerations:`

Higher starting rates: Typically 1-2% above variable rates initially
Missed opportunities: No benefit if market rates decline
Less flexibility: Harder to adjust if your financial situation changes

Fixed rates appeal to homeowners who are planning major renovations or debt consolidation, who value payment stability over potential savings.

Most HELOCs come with variable rates, but homeowners can find fixed-rate options. Homeowners who want fixed rates can also get home equity loans. These loans deliver a lump sum payment up front and then require sticking to a fixed repayment schedule.

At Better, all HELOCs are variable-rate, meaning your rate changes based on the market index (such as the Prime Rate). While this means your rate can fluctuate, it also allows you to take advantage of rate drops without refinancing.

Why we offer variable rates: Fixed-rate HELOCs usually start higher than variable-rate HELOCs, and locking in early can mean paying more than necessary if rates fall.

Home equity

Equity is the amount of your home that's already paid off. The more equity you have, the better your rate. Lenders measure equity through CLTV, or combined loan-to-value ratio:

CLTV under 80%: Typically qualifies for our lowest rates
CLTV 80% or higher: Considered higher risk, may mean a higher rate

Tip: Paying down your mortgage or boosting your home value before applying can improve your LTV and help you get a better rate.

`What can you do with a HELOC?`

A HELOC resembles a credit card. Account holders can use the credit line, repay the balance, and then re-use the same credit line during the HELOC's draw period.

The biggest difference between a HELOC and a credit card: HELOCs are secured by home equity, which means they can offer a much lower annual percentage rate than an unsecured credit card.

Money from a HELOC can:

`Improve your home`

Home renovations top the list for HELOC usage, and for good reason. Kitchen remodels, bathroom upgrades, or room additions can boost your property value while improving your living space. The bonus? Interest on HELOCs used for substantial home improvements may qualify for tax deductions, though you'll want to consult a tax professional about current regulations.

Consider this scenario: You need a kitchen renovation and get a HELOC with a $60,000 limit. The HELOC lets you draw funds as expenses come up. You might spend $20,000 of the credit line for cabinets this month, for example. You'd pay interest only on that balance and not on the full $60,000 credit limit.

`Consolidate debt`

HELOC rates typically beat credit card rates by wide margins, making debt consolidation an attractive way to use a HELOC. You can pay off high-interest credit cards, personal loans, or other debts with your lower-rate credit line. This strategy simplifies your finances by turning multiple payments into one.

Lower monthly payments: Consolidating $50,000 in credit card debt at 18% APR into a HELOC at 8% could cut your monthly payments significantly.

This advantage does come with a bigger risk. You're securing consumer debt with the value of your home. That's one reason it's important to make sure you can afford the payments before taking out a HELOC.

`Pay for other expenses`

HELOCs work well for major life expenses beyond renovations. College tuition, wedding costs, medical bills, or emergency repairs all become more manageable with access to your home's equity. Some homeowners establish HELOCsas emergency funds, drawing only when needed.

Business owners sometimes use HELOCs to fund ventures or smooth cash flow gaps. The key is comparing rates carefully and ensuring any use of your credit line aligns with your long-term financial goals before putting your home at stake.

Property location

What can you do with a HELOC

Understanding HELOCs

Application process for a HELOC

`Step 1: Gather information`

Start by learning more about your personal finances. This means checking your credit score. Most lenders require a minimum score of 620, though scores above 740 can help borrowers get the very best HELOC rates.

Next, find out how much equity you have by estimating your home's current market value and subtracting your remaining mortgage balance. If your home is valued at $350,000 and you owe $150,000 on the mortgage, your equity is around $200,000.

Keep in mind you won't be able to borrow all of your home's equity. Most lenders require 15% to 20% of the home's value to remain unborrowed. Better can allow HELOCs that leave as little as 10% of the home's value unborrowed.

Finally, calculate your debt-to-income ratio, or DTI. Add up your monthly debt payments and then compare them to your gross monthly income. Someone with $3,000 in monthly debts and $6,000 in monthly income would have a DTI of 50%. Ideally, borrowers should have DTIs below 43%.

You'll need to gather up the documents that show all these numbers: Your pay stubs, W-2s, bank statements, mortgage statements, for example.

`Step 2: Compare rates`

Once you're familiar with your own financial data, it's time to check rates with lenders. HELOC rates can vary a lot between different lenders, so it's good to check more than one offer. Advertised rates won't necessarily be the rates you get. Getting a preapproval is the best way to see a rate that's unique to you.

Most HELOCs have variable rates, which means they change with market conditions. Variable rates are based on the prime rate. On top of the prime rate, the lender adds its margin rate. It's the margin rate that can vary by lender.

Along with rates, compare annual fees, closing costs, and minimum draw requirements. Many lenders offer introductory rates that increase after an initial period. Understanding these terms prevents future payment surprises.

`Choose a lender`

Select a lender based on overall value rather than just the lowest advertised rate. Consider customer service reputation through online reviews and industry ratings. The application process itself often reveals much about a lender's efficiency and transparency.

Some lenders specialize in specific borrower profiles: people with excellent credit or high-value properties, for instance. Finding a lender experienced with your unique needs can allow better terms and faster processing.

Once you've narrowed your list of lenders, request Loan Estimates from your top three choices to make a side-by-side comparison of rates, fees, and terms before making your final decision.

Why it matters: Shorter draw periods can help you stay disciplined with borrowing, while still giving you flexibility for planned expenses like renovations or debt payoff.

Why choose Better for your HELOC

1400+ customers

provide us 5 stars in

10/05/2023

Five Star Review!

Everything except closing can be done online, very easy to read online instructions and exactly what documents need to be submitted, and can electronically sign. Very fast turnaround time. With the rising credit card rates, it makes perfect sense to get HELOC with low interest rate.

See in Trustpilot →

10/05/2023

Five Star Review!

Everything except closing can be done online, very easy to read online instructions and exactly what documents need to be submitted, and can electronically sign. Very fast turnaround time. With the rising credit card rates, it makes perfect sense to get HELOC with low interest rate.

See in Trustpilot →

05/23/2024

Better Mortgage was fantastic!

Better Mortgage was fantastic! They exceeded all my expectations. I used Better for a HELOC, and the process was quick and intuitive.

See in Trustpilot →

08/18/2024

HELOC experience...

We did a HELOC to take care of some additions we wanted to make to our new house. The entire thing took a couple of days to get approved. The HELOC is a great product and gives us the flexibility to use only what we need and keep it open for future projects. You don’t run into lending products like theirs very often. Great company!

See in Trustpilot →

07/15/2024

We needed a HELOC loan to...

We needed to take out a HELOC to remodel our home and we were nervous about the process. Better Mortgage helped us through the process and were quick to fund. Would definitely recommend Better Mortgage for your loan needs.

See in Trustpilot →

1/4

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Expert opinions

What's great about a HELOC?

The HELOC is a great way to access the equity in your home without touching the primary mortgage rate on your home.

Katharine Thibaudeau

Senior Loan Consultant

NMLS #1940997

How does a HELOC help you save on interest?

You only pay interest on what you use. Unlike a lump-sum loan, a HELOC acts like a credit line, giving you flexibility and potential interest savings if you don’t need the full amount at once.

Jake Schroeder

Loan Consultant

NMLS #2217822

What else matters besides the rate?

It’s important to have a conversation with the loan officer about what you want to do with the funds from your HELOC and how you expect to be able to use it immediately and in the future to determine the best fit.

Libby Owens

Senior Loan Consultant

NMLS #2089666

Is a HELOC is right for you?

If you can maintain responsible use of a credit card, then a HELOC should be no different—use what you want and pay off your balance as you can.

Cameron Rogers

Loan Consultant

NMLS #2065500

HELOC Rates FAQs

More resources: Rates & Calculators

Refinance rates

See today’s refinance rates and explore options to lower your monthly payment or pay off your loan faster.

Read now ->

Home equity loan rates

Tap into your home’s value with a fixed rate and flexible terms on a Better Home Equity loan.

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Cash out refinance rates

Unlock cash from your home’s equity—check today’s cash-out refinance rates and see how much you could get.

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HELOC calculator

See how much of your home’s equity you can tap into — and what it could cost — before you apply.

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Refinance calculator

Run the numbers to find out if refinancing could lower your monthly payment or shorten your loan term.

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Cash out refi calculator

Estimate how much cash you could get from your home equity with a refinance, and what your new payment might be.

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APR¹ represents the lowest available rate and may be as high as 15.55%. Lowest rate assumes a credit limit of $150,000, a combined LTV of 64%, and a FICO score of 780+. Actual rates and available credit depend on creditworthiness, LTV, loan amount, occupancy, and point adjustments. Advertised rates are based on the Prime Rate as published in the Wall Street Journal; rates are current as of [08/12/2025] and are subject to change without notice. This is not a commitment to lend.

Only the initial rate quote uses a soft credit inquiry and will not impact your credit score. A full application will include a hard credit inquiry.

Better Mortgage Corporation is a direct lender. NMLS #330511. Equal Housing Lender. Not available in all states. Please refer to NMLS Consumer Access for licensing verification.

HELOC rates

What impacts your HELOC rate?

Loan type

Credit score

Location

Terms

Home equity

Your credit score helps lenders measure risk.

Variable rates

Variable rate advantages:

Variable rate considerations:

Fixed rate

Fixed rate advantages:

Fixed rate considerations:

What can you do with a HELOC?

Improve your home

Consolidate debt

Pay for other expenses

Money from a HELOC can:

Improve your home

Consolidate debt

Pay for other expenses

HELOC pros and cons

Advantages:

Disadvantages:

HELOC alternatives

Step 1: Gather information

Step 2: Compare rates

Choose a lender

One-day HELOC

Better's process includes:

Online application

Get between $50k and $500k

1400+ customers

Five Star Review!

Five Star Review!

Better Mortgage was fantastic!

HELOC experience...

We needed a HELOC loan to...

Get your cash estimate

Expert opinions

What's great about a HELOC?

Katharine Thibaudeau

How does a HELOC help you save on interest?

Jake Schroeder

What else matters besides the rate?

Libby Owens

Is a HELOC is right for you?

Cameron Rogers

Historical mortgage rate trends

Compare rates

HELOC Rates FAQs

More resources: Rates & Calculators

Refinance rates

Home equity loan rates

Cash out refinance rates

HELOC calculator

Refinance calculator

Cash out refi calculator

See how much cash you could unlock

Related articles

Everything you need to know about HELOC loans

HELOC pros and cons: What to know before borrowing

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Using a HELOC to Buy a Second Home: Pros and Cons

HELOC alternatives: Ways to get home equity and other loans

Real estate brokers vs. agents: What’s the difference?

Do HELOC rates change? Learn how often & what affects them

Knowing Your Mortgage Numbers

Can You Get a Fixed-Rate HELOC? How Do They Work?

More questions you might have

Turn your home’s value into cash

`Variable rates`

`Variable rate advantages:`

`Variable rate considerations:`

`Fixed rate`

`Fixed rate advantages:`

`Fixed rate considerations:`