A home equity line of credit (HELOC) lets homeowners tap the equity in their home through a secured loan. When you get a HELOC, you can take the money available in installments as you need it, and pay interest only on what you’re using.
For a 10-year HELOC, the average rate is 7.36%. On a 20-year HELOC, the average rate is 8.30%.
Related: Best Home Equity Loan Lenders
Current HELOC Rates

Loan term
Interest rate
Weekly change
Monthly interest payment per $25,000

10-year HELOC
7.36%
+0.00%
$153.33

20-year HELOC
8.30%
+0.23%
$172.92

Source: Bankrate.com

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10-year HELOC Rates
This week’s average interest rate for a 10-year HELOC is 7.36%, versus 7.36% last week. That compares to the 52-week low of 3.99%.
At today’s rate, a $25,000 10-year HELOC would cost a borrower approximately $153 per month during the 10-year draw period.
HELOCs have a set draw period, often 10 years, followed by a repayment period that can be equal or different than the draw period. During the repayment period, the interest rate may change. That’s different than with home equity loans, where amounts are disbursed all at once, but carry a fixed interest rate for the life of the loan.
Generally, a borrower pays only interest during the draw period, but they can also repay their principal during that time if they wish.
20-year HELOC Rates
The interest rate for a 20-year HELOC averaged 8.30% this week. That’s up from 8.07% last week and 5.14% at the lowest point over the past 52 weeks.
At this rate, a $25,000 20-year HELOC would cost a borrower approximately $173 per month.
What Is a HELOC?
Home equity lines of credit, or HELOCs, allow homeowners to borrow cash against the equity in their homes—usually as much as 80%-85% of the value.
Because these products work as lines of credit, as opposed to a lump-sum loan, homeowners can draw what they need and pay interest only on those amounts. They can draw, repay and draw again throughout the HELOC’s draw period, which is generally 10 years. The repayment period usually lasts 10 to 20 years.
HELOC lenders hold a second lien on the home, or a first lien if the homeowner has no primary mortgage. That means they can seize the home if the owner fails to repay the line of credit.
HELOC Rate Insights
HELOC rates are tied more closely to banks than are first-mortgage rates, which tend to track the performance of the bond market. The Federal Reserve, which controls the interest rates that banks charge each other, has signaled to investors that it expects to raise the fed funds rate several times in 2022 and beyond.
The current average 10-year HELOC rate is 7.36%, but within the last 52 weeks, it’s gone as low as 3.99% and as high as 7.57%. On a 20-year HELOC, which has a current average rate of 8.30%, the 52-low is 5.14% and the high is 9.35%.
HELOCs vs. Home Equity Loans
HELOCs are known as revolving credit. You can draw what you need against the line of credit, pay interest only on what you’ve used and then pay it back. HELOCs typically have terms that allow you to repeat that process over a 10-year period.
In contrast, a home equity loan is a lump-sum fixed amount that you borrow and pay it back in set installments.
The other major difference between HELOCs and home equity loans is that HELOCs have variable interest rates while home equity loans have fixed rates. That may make a home equity loan a better option for someone who has a particularly large project where they need one-time funding. A line of credit, however, may offer more flexibility because you can draw funds as needed; however, it could come at a higher interest cost down the road due to its variable interest rates.
Keep in mind that while HELOC rates may be lower than those on home equity loans now, the Fed is likely to raise interest rates several times over the next year or two, meaning repaying a HELOC will likely be more expensive in the future.

Frequently Asked Questions (FAQs)

Is HELOC interest tax deductible?

Yes, if you itemize deductions, interest costs may be deductible if you use HELOC funds to pay for home improvements.

Will taking out a HELOC impact my credit score?

As with any credit product, the credit check that lenders do will reduce your credit score temporarily. But as long as you make debt repayments on time, you can recover from that initial hit quickly.
It’s also important to note that because a HELOC is secured by your home, failing to repay it in a timely manner could put you in jeopardy of losing the home in addition to damaging your credit score.

What are some alternatives to HELOCs?

Home equity loans allow you to tap the equity in your property for cash. Loans, unlike lines of credit, are taken out for a fixed amount and repaid on a regular basis with a fixed interest rate.
You can also exchange your current mortgage for a smaller one, and pocket the difference as cash, also known as a cash-out refinance.