Best home Equity Credit Line (HELOC) Rates For June 2025

Lets you tap home equity without disturbing the main mortgage (good if you have actually secured a low rate).

Typically lower upfront costs than home equity loans.

Lower rates of interest than with charge card.

Usually low or no closing costs.

Interest charged just on the quantity of money you use.

- Close X Icon Lenders may need minimum draws.

- Close X Icon Interest rates can change up or downward.

- Close X Icon Lenders might charge a range of fees, costs, application charges, cancellation charges or early closure fees.

- Close X Icon Late or missed out on payments can harm your credit and put your home at threat.

Alternatives to a HELOC

A HELOC is not the best choice for every debtor. Depending upon what you need the money for, among these alternative options might be a much better fit:

HELOC vs. home equity loan

While comparable in some methods - they both allow house owners to obtain versus the equity in their homes - HELOCs and home equity loans have a few distinct differences. A HELOC functions like a charge card with a revolving credit line and normally has variable rates of interest. A home equity loan operates more like a second mortgage, offering funds upfront in a swelling sum at a set rate of interest.

HELOC vs. cash-out re-finance

A cash-out refinance changes your existing home mortgage with a larger mortgage. The distinction between the initial mortgage and the new loan is disbursed to you in a lump sum. The primary difference between a cash-out re-finance and a HELOC is that a cash-out refinance requires you to replace your present mortgage, while a HELOC leaves your current mortgage intact