HELOC and home equity loan interest rates: How they work and what you can expect to pay

Home equity loans and lines of credit each allow homeowners to tap their home equity and turn it into cash, and both let you use those funds for whatever you wish. They have key differences, though, including their interest rates — both in how their rates work and how they’re determined. It’s crucial to understand these differences when choosing between the two mortgage types. How HELOC rates are determined Most HELOCs are variable-rate products, meaning their interest rates are impacted by an outside in ...