In January 2026, home equity borrowing rates decreased slightly following a 75 basis point cut by the Federal Reserve, with average rates for home equity loans at 8.16% and HELOCs at 8.22%. Experts suggest that HELOCs may offer flexibility as rates could decline in the coming months, while home equity loans provide stability with fixed rates. Borrowers should assess their financial goals and timelines when choosing between these options, considering the potential risks and benefits of each. Accessing home equity can serve various purposes, such as consolidating debt or funding home improvements.
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