On August 26, 2024, CBS News used a 9.32% average HELOC rate to illustrate payments on a $25,000 line of credit. That dated benchmark is not a current rate, a personal quote, or a rate for closed-end home equity loans. HELOC rates can change, so the payment examples below apply only if the rate stays unchanged.
What was the home equity rate on August 26, 2024?
CBS News reported a 9.32% average HELOC interest rate in a payment example published August 26, 2024. The figure is a historical benchmark for a home equity line of credit, not a rate guaranteed to any borrower. See the CBS News example.
The available dated figures do not establish a comparable August 26, 2024 national average for closed-end home equity loans using the same disclosed methodology. The 9.32% figure should therefore not be treated as the rate for both products.
How much would a $25,000 HELOC cost per month?
Using its 9.32% average HELOC rate, CBS News calculated the following hypothetical payments for a $25,000 balance. Both examples assume the rate remains unchanged throughout repayment; a variable rate could change the actual payment and total interest.
Free tools Windows power users keep installed
One-click scans. No signup required.
#1 Best Overall
| Repayment period | Hypothetical monthly payment | Total interest | Basis |
|---|---|---|---|
| 10 years | $321.04 | $13,524.22 | CBS News calculation using its 9.32% average HELOC rate on August 26, 2024; assumes the rate does not change. |
| 15 years | $258.35 | $21,502.58 | CBS News calculation using its 9.32% average HELOC rate on August 26, 2024; assumes the rate does not change. |
The longer repayment period lowers the illustrated monthly payment but increases total interest in these calculations. They are examples, not lender offers or forecasts.
Why that average may not match a lender quote
A national average is a benchmark, not an individualized offer. Bankrate’s HELOC survey methodology, documented in its series hosted by FRED, describes a borrower profile with a 700 FICO score, a $30,000 line, 80% loan-to-value, an existing detached single-family primary residence, and no existing relationship or automatic-payment discount. Its weekly survey covers the 10 largest banks and thrifts in 10 large U.S. markets, weighting bank and thrift rates equally. The available data view does not surface an August 2024 value for that series, so the CBS figure cannot be attributed to it. See the Bankrate Monitor series and methodology.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
Your own terms can differ based on underwriting and the lender’s offer. Compare the rate alongside fees, draw and repayment periods, payment rules, and the contract provisions governing rate changes.
Home equity loan vs. HELOC: how the products differ
| Feature | Home equity loan | HELOC |
|---|---|---|
| How you receive funds | Generally, a lump-sum advance. | A revolving line that allows repeat draws, subject to its terms. |
| Interest rate | Generally fixed. | Typically variable. |
| Access and repayment | A defined repayment term; draw-period details do not apply in the same way as to a revolving line. | May have a draw period followed by a repayment period; review when repayment begins and how payments are calculated. |
| What to check | Rate, fees, repayment term, and required payment. | Rate and fees, draw and repayment periods, payment behavior, and the contract’s maximum rate. |
Product descriptions are general; actual terms depend on the lender and contract. Navy Federal explains the basic distinction between a home equity loan and HELOC in its guide to when to take equity out of a home.
How a variable HELOC rate can affect affordability
Federal Reserve interagency guidance says HELOCs generally do not have caps that limit rate increases. The contract must state the maximum rate that may be imposed. The guidance recommends that lenders assess whether borrowers can repay a fully drawn line and withstand rate increases; borrowers should also consider whether their budget can absorb higher payments. Read the Federal Reserve guidance on home-equity lending.
- Check how the rate can change and what index, margin, or other contract terms govern it.
- Find the maximum rate in the agreement and consider the payment at that rate, not only the initial payment.
- Ask how the payment is calculated during the draw period and after repayment begins.
- Compare fees and terms across offers, not just headline rates.
What to expect when applying
Applying does not mean immediate access to cash. Navy Federal says its application process can take a few weeks and requires financial and property documentation. Timing and requirements vary by lender; review the lender’s checklist and expected schedule before relying on funds for a specific expense.
Rank #4
Remember that your home secures the borrowing
A home equity loan or HELOC uses the property as security. Navy Federal warns that default can put the home at risk. Borrow only after considering the payment under realistic rate scenarios and whether you can repay it alongside your other obligations.
Quick Recap
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
