Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home's value and pay that amount back in monthly installments.

A home equity loan allows you to access the ownership stake you've built in your home to accomplish your financial goals. Home equity loans are generally disbursed as a lump sum and repaid in fixed installments.

It can make sense to refinance your home equity loan as interest rates decline, but only in certain circumstances.

Home loan demand reached the highest level in more than three years and refinance applications moved higher following a dip in interest rates.

SoFi reports that home equity loans include fixed-rate loans, HELOCs, and cash-out refinancing, with options varying based on financial needs.

Both HELOC and home equity loan rates have declined substantially from their 2024 highs, although HELOC rates have rebounded somewhat from this spring, when they were under 8 percent.

HELOC and home equity loan interest rates tend to be lower than other borrowing options, but they're still impacted by the Federal Reserve's rate decisions. So, while the Federal Reserve has kept the federal funds rate the same throughout the year, home equity rates have also roughly stayed in the same range, but there might be a reprieve in sight.

Filing taxes often feels stressful, especially when balancing EMIs, savings, and household expenses. Your home loan statement can make this process far easier.