$25,000 home equity loan vs. $25,000 HELOC: Which will be cheaper this May?
Homeowners are considering whether to take out a $25,000 home equity loan or a HELOC this May. Current interest rates for home equity loans average 6.95%, while HELOCs are at 7.11%. Both options have seen significant decreases in monthly payments compared to previous years, but borrowers should be cautious of the variable rates associated with HELOCs.
- ▪The average home equity loan interest rate is currently 6.95%.
- ▪A HELOC has a higher average interest rate of 7.11%.
- ▪Monthly payments for both products have decreased significantly over the past year and a half.
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MoneyWatch: Managing Your Money $25,000 home equity loan vs. $25,000 HELOC: Which will be cheaper this May? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Matt Richardson Matt Richardson Sr. Managing Editor, Managing Your Money Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
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