Home equity loan rates drop to new 2025 low

Home equity loan interest rates have reached a new low for 2025, making them an attractive borrowing option as June approaches. This offers potential savings for homeowners. Rates on 5-year home equity loans have fallen to 8.23% at the end of May, a drop from 8.80% in February 2024. This makes home equity loans more affordable than credit cards or personal loans. Homeowners also have substantial equity, with the average amount at $313,000. Borrowers should still carefully consider repayment terms and avoid overborrowing to protect their homeownership.