The average rate on a home equity loan is at its lowest level all year. The average home equity line of credit (HELOC) rate is just a couple of basis points away from matching its 2026 low. With rates at this level, be sure to compare the best home equity loan lenders and the best HELOC lenders to take advantage of these low rates and maximize your affordability. Read more below about what the best home equity lenders offer.
HELOC and Home Equity Loan Rates: Monday, May 18, 2026
The average adjustable HELOC rate is 7.21%according to the real estate data analysis company Curinos. The national average fixed rate for a home equity loan is 7.36%. Both 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: What are the benefits?
A HELOC allows you to withdraw funds from your approved line of credit whenever you need to. A home equity loan gives you a lump sum.
Since first mortgage rates don’t drop significantly, homeowners with home equity and a low primary mortgage rate may not be able to access their growing home equity without a home equity loan, or HELOC.
The Federal Reserve estimates that homeowners have $34 trillion of equity in their homes. For those who are not willing to give up their low home loan rate, a second mortgage in the form of a HELOC or HEL can be a great solution.
Learn more about how second mortgages work
How HELOC and Home Equity Loan Interest Rates Are Different
Second mortgage rates are based on an index rate plus a margin. That rate for a home equity line of credit is typically the prime rate, which has fallen 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 spread because it is a fixed rate product.
Lenders have flexibility with the pricing of a second mortgage product, like a HELOC or home equity loan, so it’s worth shopping around. Your rate will depend on your credit score, the amount of debt you have, and the size of your line of credit compared to the value of your home.
And average national HELOC rates may include “introductory” rates that may last only six months or a year. After that, your interest rate will be adjustable, probably starting with a higher rate.
Again, because a home equity loan has a fixed interest rate, it is unlikely to have a “promotional” introductory rate.
Find out if now is a good time to take out a HELOC
What the best HELOC lenders offer
The most favored HELOC lenders offer low fees, a fixed rate option, and generous lines of credit. 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.
Today, FourLeaf Credit Union offers a 5.99% HELOC rate for 12 months on lines up to $500,000. This is an introductory rate that will convert to an adjustable rate in one year. When shopping for lenders, keep both rates in mind.
The best home equity loan lenders may be even 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 rates and the fine print of payment terms.
HELOC Rates Today: Frequently Asked Questions
What is a good interest rate for a HELOC right now?
Rates vary from lender to lender. You may see rates from almost 6% to as high as 18%. The national average for a HELOC is a variable rate of 7.21% and a fixed rate of 7.36% for a home equity loan. These can serve as goals when shopping for interest 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 some equity in their home, it’s probably one of the best times to get a HELOC, or home equity loan. You don’t give up that great mortgage rate and you can use the cash withdrawn from your equity for things like home improvements, repairs and upgrades. Or practically anything else.
What is the monthly payment on a $50,000 home equity line of credit?
If you take out the entire $50,000 on a home line of credit and pay an interest rate of 7.25%, for example, your monthly payment over 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 may increase over the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are better if you borrow and pay off the balance in a much shorter period.