The difference between the current home equity loan (HEL) rate and the average HELOC rate is just 2 basis points, according to Curinos, a real estate data analytics company. Especially when rates are this close, choosing the right option doesn’t come down to just rates. It’s how you plan to use your funds that will dictate the loan product that is best for you.
HELOC and home equity loan rates: Monday, July 13, 2026
The average HELOC adjustable rate is 7.23%, according to real estate data analytics company Curinos. The 2026 HELOC low was 7.19%, last observed in mid-May.
The national average rate on a fixed-rate home equity loan is 7.36%, up from its 2026 low of 7.31% in late June.
Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.
How do HELOC interest rates work?
Most HELOCs are variable-rate products, meaning their interest rates are tied to an external interest rate. When that rate rises or falls, the rate on your HELOC generally follows suit.
HELOCs are typically tied to the prime rate, the baseline rate banks currently charge their most creditworthy customers.
The best HELOC lenders will assess the risk any borrower presents and add a margin to protect themselves. Riskier borrowers will have larger margins, while those considered less risky will receive smaller ones. Factors such as your credit score, debt-to-income ratio (DTI), and loan-to-value ratio (LTV) will all be considered in this assessment.
How do home equity loan interest rates work?
A home equity loan and its interest rate work like a HELOC in some ways and like a traditional primary mortgage in others.
As with a HELOC, the prime rate usually impacts your home equity loan rates, and lenders incorporate a margin into your rate. Both HELOC and home equity loan rates are loosely influenced by the Federal Reserve’s federal funds rate and broader economic conditions.
However, like many first mortgages, home equity loans are typically fixed-rate products, meaning you’ll have the same interest rate for the entire term. Fixed-rate HELOCs exist, but they’re much less common.
Learn more: HELOC and home equity loan interest rates: How they work and what you can expect to pay
How to qualify for a HELOC or home equity loan
Specific loan requirements vary by lender, but generally, home equity loans and HELOCs require a borrower to:
Have a FICO credit score of 680 or higher
Show a history of good credit and proof of sufficient monthly income
Obtain an appraisal to determine the current market value of the home
Have at least 15% to 20% equity in the house
Have a debt-to-income ratio of 43% or less
Show proof of in-force homeowners insurance.
Lenders may charge origination fees and other closing costs on a HELOC or home equity loan. When shopping for yours, make sure to ask about all possible application fees, annual charges, early account closure fees, and other one-time or ongoing expenses. Shop multiple lenders to find the lowest interest rate and the fewest fees.
Read more: Home equity line of credit (HELOC) vs. home equity loan: What’s the difference, and which is right for you?
HELOC and home equity loan rates FAQs
What is a good interest rate on a HELOC or a HEL right now?
Rates vary significantly from one lender to the next. You may see rates from nearly 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper. The national average for a HELOC is 7.23%, and 7.36% for a home equity loan. Those can serve as a guide when shopping rates from 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 significant equity in their homes, it’s likely a good idea to consider a HELOC or a home equity loan now. First off, rates are the lowest in years. And you don’t give up that great primary mortgage rate that you earned when you bought your house. You can use cash drawn from your equity for home improvements, repairs, and upgrades. Or virtually anything else.
What is the monthly payment on a $50,000 home equity line of credit?
If you withdraw the full $50,000 from a home equity line of credit and pay a 7.25% interest rate, for example, your monthly payment during the 10-year HELOC 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 and HELs are best if you borrow and repay the balance within a much shorter period.
