As HELOC rates have nosedived, average rates on home equity loans have gone up. Some HELOC customers have suffered through line freezes and reductions, but many others are taking advantage of the low rates made possible by federal funds slashes earlier this year.

Here are the national overnight averages calculated by Bankrate.com:

 $30,00

HELOC - 4.82%

HEL -  7.71%

$50,000

HELOC - 4.20%

HEL -  8.15%

As you can see, there’s a huge disparity. This makes it very difficult for borrowers to choose between the two loans. Do you want a low rate with the possibility of line freezes and rate increases? Or do you want a high rate with the stability of funds and a known monthly payment?

There’s no right answer, of course. HELOC loans tend to be a risky option right now, but some believe the risk is acceptable for the opportunity to borrow on the cheap.

See Also:

HELOC vs. Home Equity Loan

Is a HELOC Right for You?

Tags | Heloc, HELOC Rates, home equity loan, rates