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.

HELOC rates dropped lower this week, easing costs for borrowers. That's not the only reason to open one, though.

Both home equity lines of credit (HELOCs) and home equity loans are up in numbers, their originations rising in Q3 2024 by 6 and 8 percent, respectively. HELOC balances are bigger, too: They climbed in Q4 of last year, marking the 11th quarter in a row of growth.

A standout week for the average $30,000 home equity line of credit (HELOC): It dropped to a two-year low of 8.12 percent, according to Bankrate’s national survey of lenders. Meanwhile, the average $30,