As interest rates continue to hit record lows, more homeowners are turning to home equity loans to leverage the equity in their properties. According to a recent report by LendingTree, the demand for home equity loans has surged in recent months, with homeowners looking to tap into the value of their homes for everything from home renovations to debt consolidation.

With interest rates at all-time lows, experts suggest that now is a prime time to take out a home equity loan. The average interest rate for a home equity loan in 2025 is hovering around 4%, making it an attractive option for homeowners looking to borrow against their home's value.

But the question remains: is a home equity loan or a HELOC the better option? According to CBS News, the answer may vary depending on the homeowner's individual financial situation. While a home equity loan typically offers a fixed interest rate and predictable monthly payments, a HELOC provides more flexibility with a variable interest rate and the ability to borrow as needed.

As homeowners weigh their options, one thing is clear - the current low-interest rate environment is creating opportunities for homeowners to leverage their home equity in ways they never thought possible.