Gauging Your Home Equity Rate against National Averages

Averages on national home equity rates are difficult to ascertain. However, it is possible to estimate how your loan compares by evaluating your loan terms against the national prime interest rate.

What Is the Prime Rate?

The national prime interest rate is the interest banks pay in order to borrow money. It is set by the Federal Reserve, and it can change with frequency.

How Do I Find the Prime Rate?

The national prime interest rate is public information. You can locate the rate on the Federal Reserve's website: You can also locate the national prime rate through most financial publications including the Wall Street Journal.

How Do I Use the Prime Rate to Estimate Averages?

The national prime rate is not the average interest rate. In fact, it is the absolute lowest an interest rate could be. Use your credit score to estimate where your rates should fall above the prime rate. Start by assuming home equity loan interest rates are slightly higher than mortgage rates but slightly lower than personal loan rates. Then, use your credit score to guess where you should fall. If your score is above 750, assume a lower than average rate. If your score is below 700, assume a higher than average rate.