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

Lets you tap home equity without disrupting the main mortgage (great if you've secured a low rate).

Typically lower upfront costs than home equity loans.
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Lower rates of interest than with charge card.

Usually low or no closing costs.

Interest charged just on the amount of money you use.

- Close X Icon Lenders may need minimum draws.

- Close X Icon Rate of interest can adjust up or downward.

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

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

Alternatives to a HELOC

A HELOC is not the right option for every debtor. Depending upon what you require the cash for, among these alternative choices may be a better fit:

HELOC vs. home equity loan

While similar in some methods - they both permit homeowners to borrow against the equity in their homes - HELOCs and home equity loans have a few unique differences. A HELOC functions like a credit card with a revolving credit line and typically has variable rates of interest. A home equity loan operates more like a second mortgage, offering funds in advance in a swelling amount at a fixed rate of interest.

HELOC vs. cash-out refinance

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