According to Curinos, a real estate analysis firm, both home equity loans and lines of credit have decreased from the previous month. Average home equity loan rates were 7.44% a month ago, compared to the current rate of 7.36%. The average HELOC rate last month was 7.24%, while today it is 7.21%.
Learn the Differences Between a HELOC and a Home Equity Loan
HELOC and Home Equity Loan Rates Tuesday, May 19, 2026
According to real estate analytics firm Curinos, the average adjustable rate HELOC is 7.21%3 basis points less than a month ago. The HELOC’s 52-week low was 7.19% in mid-March. The national average rate for a fixed-rate home equity loan is 7.36%Down 8 basis points from last month and tied with the 2026 low we saw in mid-March.
Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value (CLTV) ratio of less than 70%.
HELOC or Home Equity Loan: How to Decide
Choosing between a HELOC and a home equity loan is easy when you consider what you’re using it for. A HELOC allows you to withdraw cash from your approved line of credit, pay it off, and then put it back to use. A home equity loan gives you a lump sum.
With 30- and 20-year mortgage rates still above 6%, homeowners with home equity and a favorable primary mortgage rate well below that figure may feel frustrated about not being able to access the increasing value of their home. For those unwilling to give up their low home loan rate, a second mortgage in the form of a HELOC or HEL may be an attractive solution.
Learn How to Use Home Equity to Build Wealth
HELOC and Home Equity Loan Interest Rates: What to Look For
Home equity interest rates work differently than primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is usually the preferential interest rate, which today has dropped to 6.75%. If a lender added 0.75% as margin, the HELOC would have a variable rate starting at 7.50%.
A home equity loan may have a different margin because it is a fixed interest product.
Lenders have flexibility with pricing for 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 have, and the amount of credit you are getting compared to the value of your home.
Most importantly, HELOC rates may include below-market “introductory” rates that may last only six months or a year. After that, your interest rate will be adjustable, probably starting with a substantially higher rate.
Again, because a home equity loan has a fixed rate, it is unlikely to have a “promotional” introductory rate.
Learn more about home equity and how it works
How to Find the Best Home Equity Lender
The best HELOC lenders offer:
A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to the limit of your line of credit. Take out a little; return it. Repeat.
You should also find and consider a lender that offers a below-market introductory rate. For example, FourLeaf Credit Union currently offers a 5.99% HELOC APR for 12 months on lines up to $500,000. That introductory rate will convert to a variable rate as low as 6.75% in one year, with a “lifetime prime rate” thereafter.
Beware of Hefty HELOC Minimum Withdrawals
Also, pay attention to the minimum withdrawal amount for a HELOC. The withdrawal is the amount of money that a lender requires you to immediately withdraw from your principal. Some banks will allow no or small initial withdrawal requirements. Lenders that are not part of a bank with customer deposits are likely to require a large withdrawal at closing.
Home equity loans have a unique benefit: fixed interest rates
The best home equity loan lenders may be easier to find because the fixed rate you earn will last the entire repayment period. That means just one rate to focus on. And you will receive a lump sum, so there are no withdrawal minimums to consider.
And, as always, compare annual fees or other charges and the fine print of payment terms.
Home Equity Rates Today: Frequently Asked Questions
What is a good interest rate for a HELOC or HEL right now?
Rates vary significantly from lender to lender. You may see rates from almost 6% to as high as 18%. It really depends on your creditworthiness and your diligence as a buyer. The national average for a HELOC is 7.21%and 7.36% for a home equity loan. These can serve as a guide when comparing rates from second mortgage lenders.
Is it a good idea to get a HELOC or home equity loan right now?
For homeowners with low primary mortgage rates and significant equity in their homes, it’s probably a good idea to consider a HELOC or home equity loan now. First, rates are the lowest they have been in years. And you don’t give up that great primary mortgage rate you got when you bought your home.
What is the monthly payment on a $50,000 home equity line of credit?
If you withdraw the entire $50,000 from a home equity line of credit and pay an interest rate of 7.25%, for example, your monthly payment over 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 over the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs and HELs are better if you borrow and pay off the balance in a much shorter period.