Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home’s value and pay that amount back in monthly installments.

Both home equity lines of credit (HELOCs) and home equity loans are up in numbers, their originations rising in Q3 2024 by 6 and 8 percent, respectively. HELOC balances are bigger, too: They climbed in Q4 of last year, marking the 11th quarter in a row of growth.

In most cases, having a low amount of equity in your home won't automatically disqualify you from being approved by a HELOC lender. That said, most lenders typically require you to have at least 15% to 20% equity in your home after accounting for the HELOC,

Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home’s value and pay that amount back in monthly installments.

Home equity rates did the slightest of dips in the most recent week. The $30,000 home equity line of credit (HELOC) fell one basis point to 8.28 percent, trading near its lowest level in more than a year and a half,

While there are a variety of ways to borrow money, homeowners have an alternative that many others do not – they can access their home equity. Whether it be via a home equity loan, a home equity line of credit (HELOC) or cash-out refinance,