Home equity loan interest rates just dropped under 8%. Here's what borrowers should do now.

Home equity loan interest rates dropped under 8% this week, their first time at that level in two years. Andrii Yalanskyi/Getty Images

Home equity loan interest rates fell this week to their lowest level in two years, a Wednesday report revealed. The average rate for the benchmark five-year home equity loan is now just 7.99%, according to Bankrate , giving homeowners an affordable way to borrow from their home equity with a fixed-rate product that won't shift if market conditions do.

The average rate on a 10-year home equity loan, meanwhile, is now just 8.17%, and it's 8.13% for a 15-year term, providing cost-effective options for a variety of borrowers. This is good news for homeowners in need of extra financing in today's economy, as both personal loans and credit card altern