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Borrowing from your with a comes with a series of both timeless and timely considerations. In the first category, homeowners will need to carefully calculate affordability as they could should they fail to repay their loan. In the latter category, however, the intended use of the home equity funds and the interest rate at which that money is secured become more prevalent concerns. Broader economic concerns can also impact your home equity borrowing process this spring, as items like inflation, the interest rate climate, and more all impact your decision-making.

And with a new inflation reading scheduled for release on June 11 and another Federal Reserve meeting to determine monetary policy (and interest rates) set for June 17 and June 18, new economic developments could further impact the home equity loan borrowing climate. Understanding this potential, then, prospective borrowers should start doing their research now. That starts with understanding some key items about home equity loans heading into June 2025. Below, we'll break down three of them.

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Here are three important items to know about home equity loans heading into June 2025:

for much of the last year. In February 2024, the average rate on a 5-year home equity loan was 8.80%, but it was just 8.23% at the end of May, falling to a , according to data. That 57-basis-point drop may not seem like much on paper, but it can add up to substantial savings over time, particularly considering the common 10 and 15-year repayment periods. And should inflation continue to decline (it fell in February, March and April) and interest rate cuts are issued again (which looks likely for later this year), rates here will likely fall even further. Still, if you need a home equity loan now, it may make sense to lock in today's low rate (home equity loan rates are ) and then simply look to if rates fall materially in the future.

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Partially because the home functions as collateral, home equity loans are generally one of the more affordable ways to borrow money, particularly when compared to . But this difference has been stark in recent months. The , for example, is slightly below a record 23%. Personal loan interest rates, meanwhile, are cheaper but still closing in on 13% right now. Even rates on , which had been the clear, least expensive way to borrow, have been steadily increasing in recent weeks. And unlike home equity loans, HELOC rates are variable and subject to rise or fall after the funding has been applied for. So if you're looking for one of the most affordable (and safer) ways to borrow money going into June, a home equity loan could be one of your better options.

The  has declined a bit from where it was in 2024, when it sat around $327,000. But that decline hasn't been steep, with the average at $313,000, according to a March report. Even with many lenders requiring owners to maintain a 20% equity threshold in the home, that still leaves the median homeowner with a six-figure sum of money to withdraw from right now. So if you want to , for example, a home equity loan could be the smart way to do so. Just avoid the temptation to overborrow, too, as it could risk your homeownership if you're unable to maintain your repayment schedule.

This June could be a good time to borrow money with a home equity loan. With rates here declining and recently hitting a 2025 low, alternative borrowing options costlier and the average home equity amount giving homeowners a six-figure sum to potentially leverage, this could be the way to borrow a large amount of money now. Just be sure to carefully consider repayment costs both now and over the full repayment period to better gauge long-term affordability before formally applying.