Home Equity Loan Rates in 2024
Most of the home equity loans are listed based on the industry base rate or the prime rate. Although, lenders might add an extra amount to determine their final offer rate, the prime rate represents the lowest credit rate which the lenders offer to attract borrowers. Suppose, a lender puts an extra rate of 1.45% to the prime rate of, say 7.75%, than the home equity loan rate for the borrower would be 9.20%.
This marginal rate varies among the lenders, thus the borrowers need to look for the best rates before applying for the loan. Irrespective of the lenders, borrowers with greater credit scores and lower debt-to-income ratios or CLTV ratios are more likely to avail the best rates for the home equity loan.
- Current prime rate: 8.50% (as of November, 2023)
- Prime rate in the month of October, 2023: 8.50%
- Lowest Prime rate in the past year (2022): 7.50%
- Highest Prime rate in the past year (2022): 8.50%