HELOC rates could fall in 2026 if the Fed rate-cutting trend continues, but there are other possibilities, too.

Like a home equity loan, a Heloc is a type of debt based on how much value you’ve built in your house. However, a Heloc is a revolving line of credit rather than a lump sum loan. Most Helocs are divided into two parts:

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 ...

Find out how affordable your home equity borrowing options are now.

American families collectively have a jaw-dropping $35.8 trillion in home equity as of mid-2025, according to the Federal Reserve (1). Unfortunately, much of that immense wealth is relatively illiquid and difficult to access.

How does a home equity loan work? First, it’s important to understand that the term home equity loan is simply a catchall for the different ways the equity in your home can be used to access cash. The most common types of home equity loans are fixed-rate ...

Banks are pitching home-equity lines of credit as a cheaper form of borrowing as Federal Reserve rate cuts could lower HELOC rates to the mid-6% range, according to one estimate An increasing number of homeowners are tapping the equity in their homes for ...

Understand how a Heloc allows you to borrow against your home’s equity, its benefits and risks and how it compares to other financing options