The interest rates on both home equity loans and home equity lines of credit are close to their 2026 lows, yet they remain about a full percentage point higher than 30-year conforming fixed-rate loans.
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How HELOC and home equity loan rates work and what you can expect to pay
HELOC and home equity loan rates: Thursday, May 14, 2026
According to real estate analytics firm Curinos, the average adjustable-rate HELOC is 7.21%, three basis points lower than one month ago. The 2026 HELOC low was 7.19% in mid-March. The national average rate on a fixed-rate home equity loan is 7.36%, down just one basis point from last month, but matching the 2026 low we first saw in mid-March. Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70% or less.
HELOC or home equity loan: How to decide
Choosing between a HELOC and a HEL depends on how you want to use the money. A HELOC allows you to draw from your approved line of credit as you need it. One catch: Recently, many HELOC lenders have been requiring larger and larger minimum immediate withdrawals. That can mostly erase one of the primary benefits of a HELOC, which is getting cash as you need it — and paying interest only on the amount you borrow.
You may want to consider HELOC lenders that don’t have high initial draws.
Meanwhile, a home equity loan gives you a lump sum.
With refinance mortgage rates still hovering near 6%, homeowners with accumulated equity and a much lower primary mortgage rate may feel the frustration of not being able to access that growing value in their home.
For those who are unwilling to give up their low home loan rate, a second mortgage in the form of a HELOC or HEL can be a good solution.
Learn the 6 steps to getting a HELOC
How lenders determine HELOC and HEL interest rates
Home equity interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which is currently 6.75%. If a lender added 0.75% as a margin, the HELOC would have a variable rate of 7.50%.
A home equity loan may have a different margin because it is a fixed-interest product.
Lenders have pricing flexibility with second mortgage products, such as HELOCs or home equity loans, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.
And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become variable, likely beginning at a substantially higher rate.
Because a home equity loan has a fixed rate, it’s unlikely to have an introductory “teaser” rate.
Is a home equity loan a good idea? Here are the pros and cons.
How to shop for the best home equity interest rates
The best HELOC lenders offer low fees, a fixed-rate option, low immediate draw minimums, and generous credit lines. For example, today FourLeaf Credit Union is offering a HELOC APR of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate a year later.
The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.
As always, compare fees and the fine print of repayment terms.
How long does it take to get a home equity loan?
HELOC and home equity loan rates today: FAQs
What is a good interest rate on a HELOC or a HEL right now?
HELOC interest rates vary significantly from one lender to the next, making it challenging to pinpoint the best rate. You may see rates from nearly 6% to as much as 18%. The national average for a HELOC is 7.21%, and for a home equity loan is currently 7.36%. Those can give you a good idea of what a favorable rate might be when shopping second mortgage lenders.
Is it a good idea to get a HELOC or a home equity loan right now?
For homeowners with low primary mortgage rates and a significant amount of equity in their house, it’s likely one of the best times to obtain a HELOC or a home equity loan. You don’t give up the low primary mortgage rate you got when you bought your house, and you can use the cash from your equity for home improvements, repairs, and upgrades. Really, any cash need is fair game.
What is the monthly payment on a $50,000 home equity line of credit?
If you withdraw the full $50,000 from a line of credit on your home and pay a 7.25% interest rate, your monthly payment during the 10-year draw period would be about $302. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.