# Home equity rates beat credit cards by 15 points

> HELOCs and home equity loans offer significantly lower rates than credit cards and personal loans right now.
- Title: Home equity rates beat credit cards by 15 points · CBS News
- Summary: HELOCs and home equity loans offer significantly lower rates than credit cards and personal loans right now. Home equity borrowing costs around 8% versus 23%…
- Keywords: home equity loans, heloc, interest rates, credit cards, personal loans, federal reserve, borrowing, homeowners, home equity, tax deductions, news, Home
- Source: CBS News — https://cbsnews.com/news/todays-heloc-and-home-equity-loan-interest-rates
- Author: Matt  Richardson
- Published: 2026-09-16T12:38:43+00:00
- Read time: 1 min
- Topics: home equity loans, heloc, interest rates, credit cards, personal loans, federal reserve, borrowing, homeowners, home equity, tax deductions, news
## Credit cards cost 23% interest
Personal loans hover around 12% while credit card rates recently hit 23%. Both options make borrowing expensive right now.
## Home equity averages $300,000
The average homeowner has over $300,000 in equity. This makes home equity loans and HELOCs viable borrowing options.
## Current rates around 8%
Home equity loans average 8.14% while HELOCs average 8.03%. Both are significantly lower than credit cards and personal loans.
## How each product works
Home equity loans provide a lump sum with fixed rates and immediate repayment. HELOCs offer revolving credit with variable rates and interest-only payments initially.
## Tax breaks for renovations
Interest paid on home repairs and renovations may be tax deductible. This applies to both HELOCs and home equity loans for IRS-eligible projects.
## Your home is collateral
Missing payments could lead to foreclosure since your home backs the loan. Shop around carefully to find rates and terms that fit your budget.
## Key takeaway

Home equity borrowing costs around 8% versus 23% for credit cards, making it a far cheaper option for homeowners needing cash.