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This week in home news
As HELOC rates inch closer to 8 percent, home prices hit a benchmark of their own: the 20th all-time high in a row. Bankrate’s stories also look at how the Federal Reserve’s interest rate decision affects home equity borrowing costs, why lenders limit how much equity you can access, seniors using home equity to cover rising long-term care, and the differences between home equity loans and home renovation loans. We also discuss how to spot predatory lenders and demystify HELOC teaser rates.
The top stories in home equity, mortgages and real estate
Why lenders won’t let you access all your home equity
Rising home prices have left many homeowners with a record amount of equity. But just because your housing stake may add up to hundreds of thousands of dollars, it doesn’t mean lenders will let you access it all. There are several reasons why they limit the amount of equity you can tap (believe it or not, it’s for your protection, as well as theirs). We will dive into all of the details.
The Fed holds pat on rates: What does that mean for borrowers?
When the Federal Reserve began cutting interest rates last year, home equity rates fell too. But the Fed has left interest rates unchanged for two meetings in a row this year, signaling that inflation and uncertainty around tariffs and employment remain a concern. What do the Fed’s moves mean for the homeowners who have HELOCs or are considering taking out new home equity loans?
Home prices just keep appreciating
The latest reading from S&P CoreLogic’s Case-Shiller Index shows that annual home-price growth increased 4.1 percent in January, the 20th all-time high in a row. Housing affordability continues to be a challenge for first-time homebuyers as they juggle high home prices along with elevated mortgage rates. Is there a light at the end of the homeownership tunnel?
Home equity loan vs. home renovation loan — which one nails it?
If you’re eyeing a renovation to spruce up your home, you might be debating between a home equity loan and a home renovation loan. While the funding options may sound alike, the loans couldn’t be more different. From loan sizes and interest rates to approval times and repayment terms, we’ve put together a handy guide on how to choose between the two.
Why you might need your home equity in later years
The cost of aging gracefully comes with a hefty price tag: $100,000 a year and rising for long-term care. This is where home equity can be a valuable tool. Seniors, who are sitting on a massive amount of home equity, can tap into their housing wealth to pay for healthcare and medical costs in their later years. Here’s a look at some of the potential options and how to weigh the pros and cons.
$203,000
The amount of “tappable equity” the average mortgage-holding homeowner has in their home. This is how much they can borrow against, while still maintaining the 20% equity stake most lenders require.
Source:
ICE Mortgage Monitor March 2025
Don’t fall prey to predatory lenders
While not as rampant as they once were, there are still unscrupulous lenders out there looking to lure in less-than-savvy borrowers. Inflated interest rates, prepayment penalties and hidden fees: These are some of their tricks. Here are some of the warning signs and how you can protect yourself from becoming a victim.
Rates round-up
Another week, another HELOC low…
Home equity line of credit (HELOC) rates continue to drop, currently close to 8 percent — a level not seen since 2023. Meanwhile, at 8.37 percent, the average $30,000 home equity loan is now at its lowest level in 2025.
…while mortgage rates inch up
While the benchmark 30-year fixed rate mortgage is now averaging 6.78 percent, it’s still well below the 7 percent mark it was at one year ago.
In case you missed it
Technically, these stories were released in the previous weeks, but they’re still worth highlighting.
The low-down on low-low HELOC offers
They’re called teaser rates for a reason: Lenders are trying to lure you in with low-for-a-limited time introductory offers. At face value, they seem like a good deal, but it’s important to read carefully all the terms and conditions – to make sure you understand what happens after the honeymoon period ends.
Credit union turns over a new leaf
After 83 years as Bethpage Federal Credit Union, this venerable financial institution has officially rebranded itself as FourLeaf Federal Credit Union. The name change comes at a time when the Northeastern provider of HELOCs, mortgages and other financial products is expanding its presence in the New York area. Will it prove lucky for borrowers? See how we rate FourLeaf.
Read the full article here
